As the cryptocurrency landscape evolves, Tether, the notable issuer of the popular stablecoin USDT, is set to explore a groundbreaking venture into the gold mining sector. This strategic move aims to leverage their substantial profits in the digital currency market, venturing into the tangible asset of metals.

Recent reports from the Financial Times indicate that Tether’s leadership is actively investigating diverse opportunities within the gold industry, ranging from mining operations to refining processes and trading ventures.

The Value of Gold in Modern Economies

Paolo Ardoino, Tether’s CEO, has articulated a captivating vision for gold, likening it to a “natural Bitcoin.” During a conference earlier this year, he delineated a viewpoint that challenges the conventional narrative of Bitcoin as “digital gold,” instead arguing that gold serves as a “foundational asset” in today’s economy.

This pivot towards gold has raised eyebrows within traditional mining circles, prompting inquiries into Tether’s strategic intentions and potential for succeeding in this competitive field.

A prominent executive in the mining sector remarked that while Tether’s enthusiasm for gold is commendable, the company may still be formulating a robust strategy that will allow them to navigate the complexities of the mining industry successfully.

With a stunning market capitalization of approximately $168 billion, Tether ranks as one of the most lucrative players in the cryptocurrency arena. Notably, the company reported an impressive profit of $5.7 billion during the first half of this year and is recognized as among the largest holders of U.S. Treasuries, utilizing these assets to strengthen the backing of its stablecoin.

Moreover, Tether has made notable advancements in the realm of gold, maintaining $8.7 billion in gold reserves stored in a secure Zurich vault, which serves as collateral backing for its stablecoin issuance.

Connecting Cryptocurrency and Gold through Innovative Investments

In a significant step forward, Tether Investments—which oversees the company’s financial interests—recently obtained a minority share in the gold royalty firm Elemental Altus for $105 million. This deal was further enhanced by an additional $100 million investment following Elemental’s merger with EMX.

Juan Sartori, who heads Tether’s business development, informed the Financial Times that these investments are integral to a broader strategy aimed at increasing the company’s footprint in the gold sector.

In addition to investing in gold royalties, Tether has initiated conversations with Terranova Resources, a gold mining entity situated in the British Virgin Islands, though formal agreements have yet to be established.

Tether’s ambitions in the gold market also encompass the introduction of the XAUt token, a digital asset backed by physical gold, albeit with a presence that trails behind USDT in terms of market coverage.

The exploration of crypto and gold synergies extends to other enterprises, such as Blue Gold, which aims to launch digital tokens linked to its prospective gold output, driven by the belief that gold-backed cryptocurrencies will resonate globally.

Image credit: DALL-E, with chart sourced from TradingView.com