Tether Expands into Gold Sector with Profit-Driven Diversification

Stablecoin issuer leverages $5.7 billion in H1 profits to bolster gold holdings and royalty investments

Tether, issuer of the world’s largest stablecoin USDT, is accelerating efforts to invest across the gold supply chain—encompassing mining, refining, trading, and royalty platforms—as it redirects crypto-driven profits into tangible assets.

In the first half of 2025, Tether reported net profits of $5.7 billion.

The company also holds a substantial position in U.S. Treasury securities, generating income that supports its stablecoin operations.

It currently safeguards $8.7 billion in gold bullion stored in a Zurich vault as reserve collateral.

Through its investment arm, Tether acquired approximately a 32 percent stake in Elemental Altus Royalties, a Canadian-listed gold royalty company, investing about $105 million.

The company followed up with an additional $100 million investment aligned with Elemental’s merger with EMX.

CEO Paolo Ardoino referred to gold as “natural bitcoin,” positioning it as a foundational asset that complements digital currencies.

The unconventional move prompted varied reactions within the gold industry.

One executive commented: “They like gold.

I don’t think they have a strategy.” Another described Tether as “the weirdest company I have ever dealt with.”

Tether’s gold-backed token, XAU₮ (Tether Gold), remains modest compared to USDT, with a market cap of about $880 million.

Concurrently, the company is deepening its footprint in commodity trade finance, offering short-term funding for raw material shipments through a trading portfolio that has grown into the billions.

Tether’s strategic pivot reflects a broader institutional trend toward embedding real-asset diversification in digital finance.

By combining gold, Bitcoin, and traditional securities into its reserve model, the issuer reinforces the credibility, resilience, and stability of its stablecoin ecosystem.