Tether Expands Into Gold Markets

Tether has partnered with Antalpha, a crypto-finance company closely tied to Bitmain, to raise at least $200 million for a new digital treasury built around tokenized gold. This plan will rely on tether gold (XAU₮), a blockchain token backed by bullion stored in Swiss vaults, where each unit equals one troy ounce of gold. Tether gold has already become the largest tokenized gold product in circulation with a market value approaching $1.5 billion. The project highlights tether’s deeper expansion into commodities as investors look for digital liquidity combined with physical security.

Antalpha, known for lending to miners, is extending its business through tether by helping to build a global hub for lending, custody, and redemption of XAU₮. Clients will eventually redeem tokens for actual gold in vaults located in financial centers, solving one of the main challenges for asset-backed tokens. This expansion allows tether to emphasize its role beyond stablecoins and to strengthen its legitimacy in broader asset markets.

Tether is widely recognized for issuing USDT, the largest stablecoin in the world, with circulation exceeding $174 billion. Its strong profits from U.S. Treasuries have enabled tether to invest in different ventures, including artificial intelligence, energy projects, and XXI Capital, a bitcoin treasury firm launched with SoftBank and Bitfinex. XXI Capital’s goal is to hold large reserves of bitcoin, while tether continues to push diversification into metals like gold.

Paolo Ardoino, CEO of tether, has consistently highlighted gold as a strategic reserve asset. In June, tether reported $8.7 billion in bullion on its balance sheet. The $200 million treasury initiative would provide tether with a structured system for long-term exposure to tokenized gold and increase confidence among institutional investors. A fund of this size could attract participants who were previously hesitant due to liquidity and redemption concerns.

For Antalpha, the cooperation with tether reduces reliance on cyclical mining loans and creates a path into real-world asset markets. For tether, it confirms that its mission goes beyond being a dollar substitute; it is a bridge to diverse asset classes. While details of structure, custody, and investors are still being discussed, the message is clear: tether is betting on gold entering mainstream digital markets. With this move, tether reinforces its dominance in stablecoins while proving its flexibility to adapt and expand.