In a move that has surprised both the cryptocurrency and gold industries, Tether, the issuer of the world’s largest stablecoin (USDT), has begun holding discussions with mining and investment groups about investing across the entire gold supply chain. According to four people familiar with the recent talks, this potential strategy would encompass mining, refining, trading, and even royalty companies—a vertical integration rarely seen in such a conservative sector.
Tether’s Growing Appetite for Bullion
Tether’s chief executive, Paolo Ardoino, has long been outspoken about the role of gold in a new financial order, once calling it “natural bitcoin”. He has argued that gold, unlike sovereign currencies, complements digital assets like bitcoin by providing tangible backing outside of government control.
This philosophy is not merely theoretical. Tether already holds $8.7 billion in gold bars stored in a Zurich vault, according to its latest financial statements. The bullion is used as collateral for its gold-backed stablecoin, XAUT, and serves as a diversification play beyond its massive reserves of U.S. Treasuries.
A Bold Move into Mining
What makes Tether’s latest interest unusual is its potential leap from financial engineering into physical resource extraction. Investing in mining operations or royalty streams would signal a major shift: from being a custodian and token issuer to becoming a player in the industrial backbone of global gold supply.
Such a move would tie Tether’s fortunes not only to the digital-asset ecosystem but also to the geopolitics and complexities of resource markets, from African and Latin American gold mines to the world’s largest refining hubs.
Industry Reaction: Skepticism and Surprise
Unsurprisingly, the gold mining industry—known for its conservatism—has reacted with raised eyebrows. One mining executive quipped:
“They like gold. I don’t think they have a strategy.”
This sentiment captures the sector’s cautious stance. While Tether has the financial firepower to back large investments, its unconventional reputation leaves many wondering if it can navigate the operational and regulatory hurdles of the mining business.
Strategic Implications
If Tether follows through, the implications could be far-reaching:
- Tokenized Gold Supply Chains – By integrating mining with blockchain-backed ownership, Tether could pioneer traceable, tokenized bullion markets.
- Diversification of Collateral – Greater exposure to gold would reduce reliance on U.S. Treasuries at a time of fiscal strain in Washington.
- Challenging Tradition – A crypto-native company entering one of the world’s oldest asset industries may spark a reshaping of gold market dynamics, especially in how reserves are collateralized and traded.
The Offshore Angle
For offshore investors, the convergence of digital assets and physical commodities is not just an experiment—it may be the future of capital preservation. Gold-backed stablecoins like Tether’s XAUT offer investors a bridge between the tangible security of bullion and the liquidity of blockchain, while direct exposure to mining and refining could open entirely new avenues for offshore structured finance.
At Invest Offshore, we continue to track these intersections between precious metals and digital assets. With Africa’s Copperbelt region already attracting billions in investment, gold supply chain plays could be the next frontier. Invest Offshore has investment opportunities in West Africa seeking investors for the Copperbelt Region.
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