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Stablecoin giant Tether is exploring deeper involvement in the global gold market, according to a report from the Financial Times. The company has reportedly opened talks with mining and investment groups to potentially allocate capital across multiple segments of the gold supply chain, ranging from mining and refining to trading and royalty firms.
Tether’s Growing Gold Footprint
Tether, best known as the issuer of USDt (USDT), has already built a significant position in physical gold. The company currently holds $8.7 billion in bullion reserves, which are stored in a vault in Zurich, Switzerland. These holdings back Tether Gold (XAUT), a gold-pegged cryptocurrency that has reached a market capitalization of about $1.4 billion.
With this new push, Tether is signaling that it intends to move beyond holding gold reserves and instead become more active in the industry itself. Investing in companies along the supply chain could give the stablecoin issuer both exposure and influence in the broader commodities market.
Diversification of Reserves
This expansion comes as part of Tether’s broader strategy to diversify its reserves. As of mid-2025, the company reported $162 billion in total reserves, with about $130 billion — or 80% — invested in cash, cash equivalents, and short-term deposits. Much of this is tied to U.S. Treasuries, where Tether has around $127 billion in direct and indirect exposure.
While this treasury-heavy reserve structure provides stability, it also concentrates risk in a single asset class. By branching into gold and other commodities, Tether aims to reduce that concentration and hedge against potential volatility in government debt markets.
The strategy appears to be paying off. According to a June audit, Tether recorded $5.7 billion in net profit in the first half of 2025.
Gold’s Strong Performance in 2025
The timing of Tether’s gold ambitions coincides with a strong year for the precious metal. Year-to-date, gold prices have surged 36.5% in 2025, rising to about $3,600 per ounce, according to data from APMEX.
The rally has been fueled by global economic uncertainty, geopolitical tensions, and continued demand for safe-haven assets. For Tether, which already manages billions in bullion, investing further in the supply chain could enhance returns while capitalizing on gold’s bullish momentum.
Previous Moves in Commodities
This is not Tether’s first foray into the commodities sector. In October 2024, the company considered lending some of its profits to commodity traders. Just a month later, in November 2024, Tether financed a $45 million crude oil transaction, marking its entry into the energy sector.
Most recently, on Friday, August 29, 2025, Bloomberg reported that Tether boosted its stake in Elemental Altus Royalties, a Canadian gold royalty firm, with a $100 million share purchase. Tether now owns 37.8% of the company, which generates revenue from gold mining projects worldwide.
This incremental approach suggests Tether is strategically positioning itself as both a financial backer and an active participant in commodities markets.
Why Gold Matters for Tether
Tether’s interest in gold represents more than just diversification. For years, the stablecoin issuer has faced scrutiny over the transparency of its reserves. By increasing its exposure to tangible assets like gold, Tether can strengthen market confidence while also benefiting from commodities that traditionally retain value in uncertain times.
Gold, in particular, offers a hedge against inflation and currency devaluation, making it a natural fit for a company that issues the world’s largest stablecoin.
Outlook for Tether’s Expansion
While Tether has yet to publicly comment on the reported discussions, its recent moves show a clear intent to broaden its presence in real-world assets. If the company proceeds with investments across the gold supply chain, it could mark one of the most significant steps yet in its diversification journey.
As global markets continue to navigate economic turbulence, Tether’s strategy highlights how stablecoin issuers are evolving from purely digital currency operators into influential players in traditional asset markets.
