- Tether explores investments across gold mining, refining, trading and royalty companies to diversify portfolio risk.
- Company holds $8.7 billion in physical gold backing its $1.4 billion market cap Tether Gold stablecoin.
Tether, a leading stablecoin company, is reportedly having strategic conversations with mining firms and investment groups about potential capital investment in a variety of gold supply chain segments. This growth is a major diversification initiative outside the traditional treasury-based reserve strategy of the company.
Strategic Gold Market Expansion
Recent reports indicate that Tether has embarked on discussions on investing in various segments of the gold industry, such as mining activities, gold refining, gold trading, and royalty firms. The company now holds physical gold reserves of $8.7 billion in Zurich, Switzerland, vaults.
These gold reserves are the direct backers of Tether Gold, the precious gold-backed stablecoin owned by the company that now has around $1.4 billion in total market capitalization. The cryptocurrency offers investors exposure to gold via integration of blockchain technology.
The diversification approach by Tether comes when the price of gold has been performing exceptionally well in the year 2025, and the price per ounce is at about $3,600. This is an impressive 36.5% year-to-year price growth that is making gold investments all the more appealing to institutional investors.
The issuer of the stablecoin controls total reserves of $162 billion, of which about 80% is in cash equivalents and short-term deposits. About $127 billion of this holding is direct and indirect United States Treasury exposure, which offers significant liquidity.
According to recent financial reports, Tether has recorded a net profit of $5.7 billion in the first half of 2025, which shows that it is performing well in its operations. This profitability gives them more capital to invest in strategic investments and portfolio expansion projects in different asset classes.
Tether has already tried to enter commodity markets, such as lending to commodity traders in October 2024. The company later ventured into oil trading with a $45 million crude oil financing deal in November.
Most recently, Tether added to its ownership stake in Canadian gold royalty company Elemental in a massive share buy of $100 million. The issuer of stablecoins now owns 37.8% of the company that focuses on purchasing revenue streams of gold mining activities.
This gold supply chain investment plan is indicative of the overall approach by Tether to minimize portfolio concentration risk in the context of leveraging commodity market opportunities.
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Source: https://thenewscrypto.com/tether-expands-gold-portfolio-strategy-with-gold-supply-chain-investments/
