Tether Eyes Gold Sector as Stablecoin Profits Fuel Expansion

Stablecoin giant Tether is ramping up investments in gold, seeking opportunities from mining to tokenized bullion, as the metal outperforms Bitcoin in 2025. According to the latest report from Financial Times, the firm has already held multiple discussions with gold sector players. Some negotiations have advanced to deal-making, while others have fallen through. Early Stakes and Failed Talks The company’s most visible move so far has been a $105 million minority investment in Toronto-listed royalty firm Elemental Altus. This gave Tether a direct foothold in the gold royalty business, where companies earn a share of revenue from mining projects without operating the mines themselves. However, not every conversation has ended in a deal. Tether was also in talks with Terranova Resources, an investment vehicle based in the British Virgin Islands. While both sides explored potential cooperation, the discussions did not produce an agreement. Still, market insiders believe more acquisitions may be on the horizon. Billions in Profits and Reserves to Back Growth Behind this expansion lies Tether’s strong financial position. The firm generated $5.7 billion in profits during the first half of 2025 alone. With USDT’s market cap now standing at $168 billion, Tether has both the liquidity and the momentum to enter new markets. The company already has significant exposure to hard assets. It owns $8.7 billion worth of physical gold bars, stored securely in Zurich. Alongside gold, U.S. Treasuries remain a core part of its reserves, reinforcing stability for its stablecoin. Gold Outshines Bitcoin in 2025 Tether’s renewed focus on gold comes at a time when the metal has been outperforming digital assets. Since the start of 2025, gold has surged 37%, while Bitcoin has advanced 22%. The contrast is striking for investors who long believed Bitcoin would displace gold as the ultimate store of value. Instead, recent market conditions have highlighted gold’s resilience. Gold prices reached a record high above $3,600 per ounce in August. Analysts see further gains, with Goldman Sachs projecting $5,000 and Matrixport expecting at least $4,000 in the months ahead. For Tether, this rally provides a financial and symbolic justification for its gold strategy. XAUt Token Gains as Investors Seek Safety Tether is not only buying gold but also offering it as a digital asset. The company operates XAUt, a token backed by physical bullion. As gold prices surged, XAUt saw its market cap jump to $877 million, with the token recently trading around $3,559. That marks a 5% rise within a week, even as the wider crypto market has faced selling pressure. For investors, XAUt allows exposure to gold’s stability while maintaining the flexibility of a digital asset. Paolo Ardoino’s Gold Philosophy Tether’s pivot is closely tied to the views of its CEO, Paolo Ardoino. A long-time supporter of gold, Ardoino has repeatedly argued that it offers deeper reliability than national currencies. At the Bitcoin 2025 Conference, he referred to gold as “natural Bitcoin”. While many crypto enthusiasts view Bitcoin as “digital gold,” Ardoino argued that physical gold possesses the same qualities of scarcity and trust but avoids the speculative risks that weigh on cryptocurrencies. His stance has helped shape Tether’s strategy, providing the company with a philosophical anchor for its financial decisions. https://twitter.com/paoloardoino/status/1959980424597221408 Industry Skepticism and Strategic Questions Despite Tether’s enthusiasm, reaction from the traditional gold sector has been cautious. Mining executives, used to decades of conservative investment practices, doubt whether Tether has a clear long-term plan. One executive summarized the sentiment bluntly: “They like gold. I don’t think they have a strategy.” Skepticism also comes from the fact that mining companies have struggled to match gold’s rally in their stock performance. Political and Strategic Shifts The gold push also coincides with a new political dimension at Tether. Earlier this year, the company hired Bo Hines, a former Trump crypto official, as a strategic advisor. His arrival suggests Tether is seeking stronger ties with regulators and policymakers while preparing to expand its global footprint.

Meanwhile, economist Peter Schiff noted that despite the recent sharp rise in gold and silver prices, there are no signs of excessive speculation.