Tether, the issuer of the well-known USDT stablecoin, is seeking $200 million from investors to expand its tokenized gold offerings through a collaboration with Antalpha. The move aims to establish a public vehicle that will hold XAUt, Tether’s gold-backed digital asset, further solidifying the firm’s presence in the growing market of tokenized precious metals.

Partnership Between Tether and Antalpha

Tether and Antalpha, a platform closely linked to crypto mining giant Bitmain, are working together to raise $200 million to create a digital-asset treasury company. The company will stockpile XAUt, a digital token backed by physical gold. Tether holds an 8.1% stake in Antalpha, strengthening their strategic partnership.

This initiative extends the companies’ previous collaboration on Tether Gold, which launched in 2020. The token, fully backed by physical gold bars stored in secure vaults, has grown to a market capitalization of $1.5 billion. The $200 million fundraise will provide additional liquidity and infrastructure to make XAUt more accessible to investors globally.

Creating a Tokenized Gold Treasury

The plan is to establish a treasury company that will hold tokenized gold while providing investors with exposure to digital gold. Sources confirm that Cohen & Co. is acting as the lead advisor for the deal. By centralizing gold holdings in a public vehicle, Tether and Antalpha aim to offer institutional and retail investors a simpler and more secure way to invest in gold digitally.

Antalpha also announced plans to expand physical vaults in major financial centers. These vaults will allow XAUt holders to swap digital tokens for actual gold bars, adding an extra layer of security and confidence for investors.

Leveraging Growing Gold Demand

The timing of this expansion coincides with a surge in gold demand, which has risen 46% this year amid concerns about inflation and global political tensions. As investors seek safe-haven assets, Tether’s gold-backed tokens have doubled in market capitalization, reflecting heightened interest in tokenized precious metals.

By offering digital gold with a physical backing, Tether aims to combine the advantages of blockchain-based trading—speed, transparency, and accessibility—with the traditional stability of gold. This approach positions XAUt as a strong contender for institutional adoption in the digital asset space.

Broader Ambitions for Tether

While raising $200 million for XAUt, Tether is also seeking to raise up to $20 billion for its main USDT stablecoin business. A successful fundraising round could value the company at around $500 billion, potentially making it one of the largest privately held firms worldwide.

This strategy aligns with the growing trend of digital-asset treasury companies, which aim to tokenize real-world assets and provide investors with innovative financial instruments. Companies are increasingly following models inspired by Michael Saylor’s corporate Bitcoin strategy, acquiring significant assets to establish listed proxies for digital currencies and commodities.

Expanding Tokenized Asset Services

Antalpha plans to offer collateralized lending against XAUt, giving investors additional ways to leverage their digital gold holdings. This approach creates a multi-layered financial ecosystem where gold can serve both as a store of value and a lending collateral, expanding the utility of tokenized assets beyond simple trading.

The creation of additional physical vaults in financial hubs also ensures that XAUt holders can redeem digital tokens for real gold, providing transparency and trust—critical factors for institutional investors. By combining on-chain accessibility with off-chain guarantees, Tether and Antalpha are bridging the gap between traditional finance and decentralized assets.

Rising Competition and Industry Trends

The $200 million fundraise comes at a time when digital-asset treasuries are rapidly increasing in number. Data from PitchBook indicates that more than 80 companies have established tokenized asset funds this year. These companies often use special purpose acquisition vehicles (SPACs) or reverse takeovers to build listed exposure for digital and real-world assets.

Despite the momentum, some crypto treasuries have seen their stock prices decline recently, reflecting a temporary cooling of interest from institutional investors. Tether’s strategy to combine a trusted stablecoin with gold-backed digital assets could help differentiate its offering amid rising competition.

Future Outlook for Tokenized Gold

Tether’s expansion into tokenized gold underscores the growing convergence of traditional finance and blockchain technology. By raising capital and expanding its gold-backed offerings, the company aims to provide a reliable, transparent, and scalable solution for investors seeking exposure to precious metals in a digital format.

If successful, Tether’s initiative could pave the way for broader adoption of tokenized commodities, establishing XAUt as a preferred vehicle for both institutional and retail investors in the evolving digital asset ecosystem.