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Tether (USDT), the world’s largest stablecoin issuer, is ramping up its gold investments in a bid to diversify reserves and solidify its financial base. However, its growing appetite for gold royalty companies has just hit a roadblock — Gold Royalty Corp (GROY) has implemented a poison pill strategy to prevent Tether from gaining significant control.
This move comes amid growing scrutiny of Tether’s aggressive expansion into traditional assets like U.S. Treasuries and gold, as well as its mounting influence across both the crypto and commodities markets.
Tether’s Expanding Gold Ambitions
Tether has made no secret of its strategy to back USDT with a blend of U.S. Treasuries, gold, and other real-world assets. As of November 2025, the company holds over $183 billion in circulating USDT, making it the largest stablecoin by both market capitalization and daily trading volume.
The latest attestation reports, dated September 30, 2025, reveal that Tether’s balance sheet includes nearly $13 billion in gold, representing about 7.1% of its total reserves.
If this trend continues, Tether could soon rank among the largest private gold holders in the world, surpassing some smaller nations in total reserves. Much of this gold is also linked to the backing of xAUT, Tether’s own gold-pegged token.
Heavy Investments in Gold Royalty Companies
To further strengthen its exposure to the gold market, Tether has acquired major stakes in several gold royalty companies.
It already holds:
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Over 50% ownership in Elemental Altus Royalties.
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Approximately 4.6% ownership in Metalla Royalty & Streaming Ltd.
Both companies provide Tether with indirect exposure to global gold production without direct mining risks. By investing in royalty firms, Tether earns consistent returns from gold output royalties, similar to dividend payments in traditional finance — all without the operational burden of running mines.
This strategy aligns with Tether’s broader move toward hard asset diversification, seeking stability beyond crypto’s volatility while maintaining yield-generating positions.
GROY Implements a “Poison Pill” Defense
Tether’s latest target, Gold Royalty Corp (GROY), a Vancouver-based company managing over 200 gold royalties and streaming agreements, recently became wary of Tether’s growing ownership.
After Tether disclosed an 8.1% stake in late October 2025, it continued accumulating shares aggressively, surpassing the 10% ownership threshold earlier this month. This move triggered regulatory disclosure requirements and raised concerns among GROY’s board about a potential takeover attempt.
In response, GROY enacted a Shareholder Rights Plan, commonly known as a poison pill, on November 5, 2025. The measure is designed to prevent hostile takeovers and protect minority shareholders.
Under this plan:
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Tether may increase its ownership up to 15% without board approval.
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Any attempt to exceed the 15% threshold would trigger dilution rights, allowing existing shareholders to buy new shares at a 50% discount to market price.
This would effectively double the number of shares in circulation, diluting Tether’s stake and significantly reducing its voting power and economic influence.
The plan will remain active for three years, unless renewed or canceled earlier by GROY’s board.
A Strategic Standoff Between Crypto and Gold
The GROY poison pill highlights an emerging tension between traditional finance and crypto-based investors. While Tether’s aggressive accumulation reflects its ambition to establish influence in commodity-backed industries, GROY’s defensive move underscores legacy players’ caution about crypto firms gaining too much power in regulated markets.
Industry analysts suggest that GROY’s quick response indicates concerns over governance control and the potential volatility associated with crypto-linked entities.
While Tether has not made any formal takeover announcement, its track record of strategic equity positions suggests that it views these investments as both financial hedges and influence channels in traditional markets.
Why Tether Wants Gold Exposure
Tether’s growing appetite for gold isn’t just about diversification — it’s also a strategic hedge against macroeconomic risk and regulatory uncertainty.
By allocating more capital toward real-world assets like gold and Treasuries, Tether is strengthening confidence in USDT’s reserves amid ongoing scrutiny of its transparency practices.
Currently, over 74% of Tether’s holdings are in U.S. Treasuries, valued at around $135 billion, making it the 17th largest holder of Treasuries globally, ahead of countries like South Korea.
Adding gold provides Tether with:
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Inflation protection, especially as global central banks expand money supply.
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Reserve diversification to balance risk from U.S. debt markets.
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A tangible asset base supporting the issuance of its gold-backed tokens.
GROY’s Defensive Move: A Test for Tether’s Influence
With GROY’s poison pill now active, Tether faces a decision: either maintain its 15% ceiling or engage with GROY’s board to pursue a friendly acquisition strategy.
Pushing beyond the ownership limit without approval would not only dilute Tether’s position but could also trigger regulatory scrutiny over corporate governance and cross-industry influence.
For now, Tether has not publicly commented on its next steps, leaving analysts to speculate whether it will consolidate its current holdings or look for alternative gold exposure opportunities.
The Bigger Picture: Crypto Meets Commodities
This episode underscores how crypto companies are increasingly expanding into tangible assets, blurring the lines between digital finance and traditional markets.
Tether’s push into gold — and the subsequent resistance from GROY — represents a clash of two financial worlds: decentralized digital liquidity versus regulated commodity finance.
As Tether continues to grow, such encounters may become more frequent, raising new questions about how far a stablecoin issuer can extend its influence into traditional sectors.
Final Thoughts
Tether’s pursuit of gold underscores its ambition to become more than just a stablecoin issuer — it aims to evolve into a multi-asset financial powerhouse with influence spanning both crypto and traditional finance.
However, GROY’s poison pill defense sends a clear message: traditional firms are not ready to yield control to crypto investors, no matter how deep their pockets run.
Whether Tether respects the limit or finds a creative way to expand its gold empire, one thing is clear — its appetite for real-world assets shows no sign of slowing down.
