Stablecoin giant diversifies portfolio with $8.7 billion in physical gold and growing exposure to mining
Tether, the issuer of the world’s largest stablecoin USDt, is exploring new investment opportunities across the gold industry. The company has reportedly opened discussions with mining and investment groups to deploy capital into gold mining, refining, trading, and royalty businesses, further broadening its exposure to the commodities market.
Tether’s Growing Gold Holdings
The stablecoin firm already holds $8.7 billion worth of physical gold, stored in a secure vault in Zurich, Switzerland. These reserves back Tether Gold (XAUT), a token pegged to the price of gold, which currently maintains a market capitalization of about $1.4 billion.
The expansion into gold investments comes as the company looks to diversify its balance sheet. Out of Tether’s $162 billion in total reserves, about 80% ($130 billion) is allocated to cash, cash equivalents, and short-term deposits, including $127 billion in U.S. Treasury exposure.
Record Profits and Market Context
Tether reported $5.7 billion in net profit in the first half of 2025, supported by its large holdings in interest-bearing assets. Meanwhile, gold prices have surged significantly this year, with the spot price climbing to nearly $3,600 per ounce — a 36.5% increase year-to-date. The rally has strengthened the appeal of gold-backed digital assets such as Tether Gold.
Expanding Into Commodities
This is not Tether’s first move into the commodities sector. In late 2024, the company explored financing commodity traders and later entered oil markets with a $45 million crude oil transaction. Most recently, Tether deepened its role in gold mining by increasing its stake in Canadian royalty company Elemental with a $100 million share purchase, bringing its ownership to 37.8%.
Disclaimer
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