Tether, issuer of the world’s largest stablecoin USDT, is accelerating efforts to invest across the gold supply chain—encompassing mining, refining, trading, and royalty platforms—as it redirects crypto-driven profits into tangible assets.

In the first half of 2025, Tether reported net profits of $5.7 billion.

The company also holds a substantial position in U.S. Treasury securities, generating income that supports its stablecoin operations.

It currently safeguards $8.7 billion in gold bullion stored in a Zurich vault as reserve collateral.

Through its investment arm, Tether acquired approximately a 32 percent stake in Elemental Altus Royalties, a Canadian-listed gold royalty company, investing about $105 million.

The company followed up with an additional $100 million investment aligned with Elemental’s merger with EMX.

CEO Paolo Ardoino referred to gold as “natural bitcoin,” positioning it as a foundational asset that complements digital currencies.

The unconventional move prompted varied reactions within the gold industry.

One executive commented: “They like gold.

I don’t think they have a strategy.” Another described Tether as “the weirdest company I have ever dealt with.”

Tether’s gold-backed token, XAU₮ (Tether Gold), remains modest compared to USDT, with a market cap of about $880 million.

Concurrently, the company is deepening its footprint in commodity trade finance, offering short-term funding for raw material shipments through a trading portfolio that has grown into the billions.

Tether’s strategic pivot reflects a broader institutional trend toward embedding real-asset diversification in digital finance.

By combining gold, Bitcoin, and traditional securities into its reserve model, the issuer reinforces the credibility, resilience, and stability of its stablecoin ecosystem.