Tether, the issuer of the world’s largest stablecoin USDT, is reportedly discussing deepening its investment in gold mining companies as part of its wider expansion strategy.
According to a Sept. 5 Financial Times report, the company has held discussions with mining and investment groups to explore opportunities across the entire gold supply chain.
If the plan materializes, it would allow Tether to participate in every stage of the process, from mining and refining to trading and royalties.
Tether has not responded to CryptoSlate’s request for comment as of press time.
Meanwhile, the discussions coincide with renewed strength in the gold market.
Investors seeking safe-haven assets during the current global economic environment have pushed the precious metal’s price to a new all-time high of $3,550 per ounce.
This price rally has created a favorable backdrop for Tether’s interest in the sector.
Tether’s gold embrace
Tether’s reported interest in gold mining builds on its earlier moves into the sector.
The company spent nearly $90 million in June to secure a controlling stake in Canadian royalty firm Elemental Altus Royalties Corp. The deal involved purchasing 78.4 million common shares from La Mancha Investments, giving Tether 31.9% ownership and the option to raise its stake to 50%.
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On Sept. 4, the stablecoin issuer agreed to expand its stake in the gold-focused firm by acquiring an additional $100 million worth of the company shares.
Beyond equity deals, Tether already issues Tether Gold (XAUT), a leading gold-backed digital token. The firm disclosed in July that XAUT is backed by more than 7.66 tons of gold stored in Switzerland.
Notably, Tether has also reported that its gold holdings represent over 5% of the reserves for its USDT stablecoins.
Tether’s expansion into gold signals a strategy of linking tangible assets with blockchain finance at a time when both safe-haven demand and stablecoin adoption are rising
USDT dominance continues
While expanding into gold, Tether’s core business remains unmatched in the crypto industry.
Data from Token Terminal shows that USDT transfer volumes reached a record $1.32 trillion in August, facilitated by 14 million unique addresses.
With a circulating supply exceeding $170 billion, USDT represents 59.2% of the $288 billion stablecoin market.
That scale makes it the sector’s most important token, cementing its role as the backbone of global crypto liquidity.