Tether, known for its stablecoin USDT, is considering investments in gold, which could shift its asset strategy.
Tether's Investments in Gold
According to Financial Times, Tether is in talks to invest directly in the gold industry, including mining, refining, and trading. Currently, Tether holds about $8.7 billion in gold stored in a Zurich vault. Earlier this year, the company also purchased a $105 million stake in Elemental Altus, a publicly listed company in gold mining.
The Importance of Gold for Tether
Tether CEO Paolo Ardoino has claimed that gold is safer than any sovereign currency and works as a strong balance to Bitcoin. While Bitcoin is often referred to as 'digital gold', its price can swing sharply in short periods. Physical gold, on the other hand, has maintained its value through wars and economic downturns. Thus, Tether aims to provide investors with alternative asset risk profiles.
Future of USDT and Gold Assets
Tether's interest in gold indicates its ambitions to be more than just a stablecoin issuer. With over $110 billion in USDT circulation, Tether dominates the stablecoin market. By investing in gold mining and royalties, the company is establishing a bridge between digital assets and physical commodity markets.
Overall, Tether's investments in the gold sector highlight the company's desire to expand its presence beyond digital assets and offer more diversified investment opportunities.
