Tether In Talks To Invest Billion-Dollar Profits In Gold Sector: FT

Tether, the issuer of the $175 billion USDT stablecoin, is exploring investments across the gold supply chain to put part of its multibillion-dollar profits into the sector.

That’s according to a Financial Times (FT) report, which cited sources familiar with the matter as saying the stablecoin giant has held meetings with mining and investment groups in order to invest across the entire gold supply chain.

Tether is reportedly looking to acquire stakes in companies ranging from mining and refining to trading and royalty firms.

Gold Mining Sector Surprised By Tether’s Interest

Tether’s USDT stablecoin is the largest USD-pegged crypto in the market with a capitalization of more than $174.73 billion, according to CoinMarketCap data. 

To back its token, Tether holds US Treasuries, gold, and other assets that have relatively stable value and are highly liquid. 

The company is also currently the biggest holder of US Treasuries, and makes money off the interest it earns from these holdings. In the first half of this year alone, Tether generated a profit of around $5.7 billion.

In addition to the holdings in US Treasuries, the company already has a substantial amount of gold stored in a Zurich vault. Recent financial statements show Tether has $8.7 billion worth of gold bars in the vault.

The company also has its own gold-backed stablecoin, called Tether Gold (XAUt). However, this token has a much smaller market cap compared to the company’s USD stablecoin, and has a capitalization of around $875.86 million.

With the recent talks, several mining executives are surprised by the stablecoin issuer’s move. Some have also questioned whether Tether’s expansion into the bullion sector will lead to success.

“They like gold. I don’t think they have a strategy,” said one mining executive, according to the FT report. 

One commodity industry executive added that Tether is the “weirdest company I have ever dealt with.” 

Tether Already Buying Into Gold Companies

According to the report, Tether Investments, which is responsible for investing the company’s profits, has already paid $105 million for a minority stake in Elemental Altus, which is a publicly-listed company based in Toronto.  

It recently invested another $100 million in Elemental after the company announced a merger with its rival, EMX. Tether’s head of business initiatives, Juan Sartori, said that the second investment is part of the stablecoin issuer’s plan to grow its exposure to gold.

People familiar with Tether’s thinking said that Tether has held discussions with several gold royalty companies as well, the report said. These companies invest in mines in return for a percentage of their future revenues. 

Tether has also held talks with a gold mining investment vehicle based in the British Virgin Islands called Terranova Resources. However, these talks did not result in a deal, the people told FT. 

Gold Price Hits ATH As US National Debt Soars To Record Levels

In recent weeks, the US national debt topped $37 trillion for the first time ever, up $3 trillion since January 2024.

Analysts predict the situation will worsen as well. CBO, for instance, forecasts that the debt will reach 116% of US GDP by 2034, and could possibly spiral to 172% by 2054 under current policy assumptions.

In the shorter term, billionaire investor and Bridgewater Associates founder Ray Dalio has recently warned that the US may be heading for a “debt-induced heart attack.” He estimated that this may happen within the next three years if current fiscal policies continue under a Trump-style administration.

Tether’s talks with gold mining executives comes off the heels of a new all-time high (ATH) for the gold price above $3,600 per ounce. 

Monthly chart for the gold price (Source: TradingView)

Gold has developed a reputation in the market as a store of value, which investors flock to during times of economic uncertainty and turbulence. 

More recently, investors have also started turning to Bitcoin as a digital store of value that is much easier to move and transact with than gold. 

Earlier this year, during the Bitcoin 2025 conference, Tether’s CEO Paolo Ardoino likened gold to “natural Bitcoin.” 

“I prefer to think in bitcoin terms – I think gold is our source of nature,” he said.