Will Tether Gold Mining Efforts Transform the Future of Stablecoins?

Tether, the force behind USDT and gold-pegged token XAUt, is eyeing a leap into the gold industry. Sources told the Financial Times that the company is weighing mining, refining, trading, and royalty ventures. Wu Blockchain shared the details over X (formerly Twitter).

Source: X

Already, it holds $8.7B in physical gold in Zurich and invested $105M in Toronto-listed royalty firm Elemental Altus. CEO Paolo Ardoino calls gold “natural Bitcoin” — while dubbing Bitcoin “digital gold.” XAUt, launched in 2020, now boasts a $1.33B market cap and ranks 100th on CoinGecko.

Q2 Windfall: Profits, Reserves, and Surging Demand

The Q2 2025 report paints a picture of dominance: 157.1B USDT issued, 162.5B in assets, and $5.47B in excess reserves. More than $127B sits in U.S. Treasuries, while net profit hit $4.9B in Q2 ($5.7B YTD). Supply ballooned by $13B in Q2, $20B YTD. With a $168.54B market cap, Tether leaves as the largest stablecoin trailing nearly $100B behind.

Q3 Spotlight: Will Talks Strike a Deal?

Insiders suggest Q3 could bring progress. Management has flagged a U.S. product suite rollout while advancing mining-related discussions. Any deal will likely begin small — royalty or equity stakes — before expanding into operations or trading. No deals are being signed yet, and regulatory due diligence remains a hurdle, but commentators expect pick-up in the near term.

Gold as a Hedge: Why the Move Matters

If Tether invest, the advantages accrue: reserve diversification, increased support for XAUt, and fresh revenue streams from spreads and royalties. Gold being at record highs of $3,500, timing appears deliberate. Adhering to the new GENIUS Stablecoin Act carries clout as well — ensuring assets are backed by Treasuries, cash, or equivalents. Tether's significant margins give it flexibility to negotiate without liquidity issues.

Rivals on the Sidelines: Will Circle and Ethena Follow?

Circle (USDC, $72.5B) and Ethena (USDe, $12.6B) possess the balance sheets to follow Tether's cue. Circle's trust bank filing and IPO mania exhibit institutional intent, but no GLD play has yet occurred. Currently, the story remains solely that of Tether — although competitors will not remain silent for long.

Conclusion

Tether’s push towards physical assets could link its crypto tokens to real mining and refining, boosting trust and diversifying revenue. But there’s a big gap between talk and action. Without contracts, audits, and regulatory approvals, the plan remains more of an attractive idea than a proven reality.

Disclaimer: This article is for informational purposes only. Do Your Own Research before investing.