Tether's Bold Move with Gold: The Emergence of a Digital Central Bank
The leading stablecoin issuer
Tether’s approach goes beyond simply buying bullion. The firm has allocated more than $300 million to gold-focused investments, such as acquiring a 32% interest in Canada’s Elemental Altus Royalties and making exploratory investments throughout the gold supply network. These actions are part of a broader effort to diversify Tether’s reserves, which also include U.S. Treasuries and
Jefferies suggests that Tether’s gold initiatives could transform the market landscape. By digitizing gold, Tether addresses inefficiencies in traditional gold trading, such as the complexities of handling physical gold, high ETF fees, and the costs associated with rolling futures contracts. The company’s strategy resembles that of central banks, involving reserve management and liquidity oversight, while utilizing blockchain to improve accessibility. Nonetheless, regulatory challenges remain.
Tether’s gold buying spree has had a clear effect on the market. Gold prices jumped more than 50% in 2025, with many analysts crediting much of the surge to ongoing demand from Tether. The company’s expansion into gold mining and refining further cements its status as an unconventional player in the industry, with the potential to alter capital flows within the sector.
Looking forward, Tether’s gold strategy may set new standards for stablecoin stability and asset diversification. As regulatory oversight increases, the company’s two-pronged strategy—balancing adherence with innovation—positions it to adapt to changing conditions. Investors are expected to monitor Tether’s upcoming attestation reports, the rollout of USAT, and additional gold-related investments, all of which could continue to shape both digital and conventional markets
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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