#Why Is Tether Investing in Gold?
Tether is actively pursuing investments in the gold mining sector to enhance its portfolio diversification. The company is notable for operating both USDT and XAUt tokens, which are backed by substantial gold reserves and are increasingly recognized in commodity markets.
Recent reports indicate that Tether is exploring various avenues within the gold industry, including mining, refining, trading, and royalty companies. Tether's engagement with investment firms highlights their strategic focus on identifying lucrative investment opportunities. Notably, discussions included potential collaborations with Terranova Resources, a gold mining company based in the British Virgin Islands, though no agreement was finalized.
The discussions follow Tether’s significant investment of around $82 million to secure a nearly 38% controlling stake in Elemental Altus Royalties Corp., a Toronto-listed gold royalty company. This acquisition, completed in June, involved purchasing shares from existing stakeholders, such as La Mancha Investments. As a result, Tether now holds the option to increase its ownership beyond 50%.
#What Are Tether's Future Plans for Gold Investments?
In addition to its recent acquisition, Tether has been in talks with various royalty companies and is contemplating further investments, including an expansion of its stake in Elemental Altus. The company’s CEO, Paolo Ardoino, is an outspoken advocate for gold, often highlighting its reliability and stability compared to fiat currencies. At a recent Bitcoin conference, he characterized gold as a natural counterpart to Bitcoin, emphasizing that both assets hold significant value.
Tether currently maintains approximately $8.7 billion worth of gold bars in a secure Zurich vault, which backs its stablecoins. Additionally, Tether issues USDT, the world’s largest dollar-pegged stablecoin, with a market capitalization nearing $168 billion based on data from CoinGecko. This solid foundation positions Tether to potentially capitalize on growing investor interest in gold as a financial asset.