Stablecoin issuer Tether is preparing to invest its crypto profits in the gold supply chain, expanding its reach into mining, refining, and royalty businesses. The move comes as gold prices soar and reflects CEO Paolo Ardoino’s view of gold as “natural Bitcoin.”
Tether already holds $8.7 billion in physical gold reserves stored in Zurich. Its gold-backed token, XAUT, has surged in recent weeks, with its market cap surpassing $877 million.
The company has begun deepening its exposure, investing $105 million in gold royalty firm Elemental Altus in June, followed by an additional $100 million this month as it merged into Elemental Royalty Corp.
While some in the conservative gold sector question Tether’s strategy, others welcome the injection of fresh capital. For Tether, the push into gold diversification aligns with its broader investment strategy, complementing its role in stablecoins. Ardoino insists the precious metal remains an essential hedge alongside Bitcoin.
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