Tether eyes deeper dive into gold with new $100 million investment amid market boom

Tether, the issuer of the world’s largest stablecoin USDT, is reportedly discussing deepening its concern successful golden mining companies arsenic portion of its wider enlargement strategy.

According to a Sept. 5 Financial Times report, the institution has held discussions with mining and concern groups to research opportunities crossed the full golden proviso chain.

If the program materializes, it would let Tether to enactment successful each signifier of the process—from mining and refining to trading and royalties.

Tether has not responded to CryptoSlate’s petition for remark arsenic of property time.

Meanwhile, the discussions coincide with renewed spot successful the golden market.

Investors seeking safe-haven assets during the existent planetary economical situation person pushed the precious metal’s terms to a caller all-time precocious of $3,550 per ounce.

This terms rally has created a favorable backdrop for Tether’s involvement successful the sector.

Tether’s golden embrace

Tether’s reported involvement successful golden mining builds connected its earlier moves into the sector.

The institution spent nearly $90 million successful June to unafraid a controlling involvement successful Canadian royalty steadfast Elemental Altus Royalties Corp. The woody progressive purchasing 78.4 cardinal communal shares from La Mancha Investments, giving Tether 31.9% ownership and the enactment to rise its involvement to 50%.

On Sept. 4, the stablecoin issuer agreed to grow its involvement successful the gold-focused steadfast by acquiring an further $100 cardinal worthy of the institution shares.

Beyond equity deals, Tether already issues Tether Gold (XAUT), a starring gold-backed integer token. The steadfast disclosed successful July that XAUT is backed by much than 7.66 tons of golden stored successful Switzerland.

Notably, Tether has besides reported that its golden holdings correspond implicit 5% of the reserves for its USDT stablecoins.

Tether’s enlargement into golden signals a strategy of linking tangible assets with blockchain concern astatine a clip erstwhile some safe-haven request and stablecoin adoption are rising

USDT dominance continues

While expanding into gold, Tether’s halfway concern remains unmatched successful the crypto industry.

Data from Token Terminal shows that USDT transportation volumes reached a grounds $1.32 trillion successful August, facilitated by 14 cardinal unsocial addresses.

Tether USDT Monthly Transfer Volume. (Source: Token Terminal)

With a circulating proviso exceeding $170 billion, USDT represents 59.2% of the $288 cardinal stablecoin market.

That standard makes it the sector’s astir important token, cementing its relation arsenic the backbone of planetary crypto liquidity.

The station Tether eyes deeper dive into golden with caller $100 cardinal concern amid marketplace boom appeared archetypal connected CryptoSlate.