Tether, the issuer of the world’s largest stablecoin USDT, is planning to channel a significant portion of its crypto-driven profits into gold purchases and investments in gold mining companies.
A Strategic Pivot Toward Gold
The move comes amid a strong performance in the commodities market: since the beginning of 2025, gold prices have surged 37%, outpacing Bitcoin’s 22% gain over the same period.
Tether’s Chief Technology Officer Paolo Ardoino, a vocal advocate of gold, has long argued that the metal represents a safer store of value than sovereign currencies. He frames gold as a natural complement to Bitcoin—calling it “the original Bitcoin.”
Track Record in Precious Metals
This isn’t Tether’s first foray into gold:
- The company already holds $8.7 million in bullion stored in Zurich.
- In June, Tether acquired a minority stake worth $105 million in Toronto-listed Elemental Altus, a royalty and streaming firm focused on gold mining.
- Tether also issues XAUt, a stablecoin backed by physical gold, with a market cap of $880 million—although it remains far less popular than USDT.
Scale and Profitability
With a market capitalization of $168 billion, Tether ranks among the most profitable firms in the crypto sector. The company posted $5.7 billion in profit in the first half of 2025 alone, largely driven by its holdings of U.S. Treasury bonds as reserves for USDT.
Why It Matters
Tether’s pivot toward gold reflects a broader trend of institutional diversification beyond crypto assets. By blending exposure to Bitcoin and stablecoins with hard assets like gold, Tether is positioning itself as both a crypto powerhouse and a hedge against macroeconomic uncertainty.
For investors, the strategy underscores a key narrative: digital assets and traditional stores of value are no longer rivals—they’re becoming complementary pillars of a new global financial system.