Tether has expanded its partnership with Antalpha Platform Holding Company (NASDAQ: ANTA) to strengthen the global ecosystem for its gold‑backed token, Tether Gold (XAU₮).
As per a Bloomberg report, the move comes as both companies work to raise $200 million for a new digital‑asset treasury firm that would accumulate and hold reserves of the tokenized gold asset.
The initiative aims to create a publicly listed vehicle that gives investors exposure to tokenized gold through traditional financial markets. Cohen & Co. is acting as the lead advisor on the deal.
How Tether Gold Works?
Launched in 2020 by a Tether subsidiary, Tether Gold (XAU₮) represents one troy fine ounce of gold stored in London Good Delivery bars. Every token is one‑to‑one backed, with serial numbers, weights, and proof of purity, and is redeemable for physical gold.
On the Ethereum blockchain (ERC‑20), the token can also be traded or transferred anywhere in the world, closing the gap between traditional bullion and digital assets.
As part of the extended partnership, Antalpha will provide XAU₮‑backed lending and full‑stack infrastructure services from its RWA Hub, a real‑world asset platform. The company also aims to establish physical vaults in key global financial centers, allowing token owners to redeem XAU₮ for physical gold bars.
Why This Matters?
Global demand for gold has surged amid geopolitical uncertainty and persistent inflation. Its price has continued hitting a new all‑time high throughout the week, marking $3,886 as of October 4, according to goldprice.org data. Following this, Tether Gold’s market capitalization has doubled over the past year to about $1.5 billion, based on CoinGecko.
In the official press release from Antalpha, CFO Paul Liang added that the partnership aims to make digital gold more accessible and integrated with real‑world assets. He noted, “Through the Antalpha RWA Hub, we hope to deliver new capabilities and services like this that will increase the liquidity and product offerings of Tether Gold.”
“Gold has always held a unique role as a store of value, and XAU₮ brings that resilience into the digital asset space,” Tether CEO Paolo Ardoino said. “Working with Antalpha allows us to expand the reach of XAU₮ and build stronger market infrastructure around it.”
The move is part of a broader trend of tokenizing real‑world assets (RWAs), where physical commodities, securities, or cash flows are represented as blockchain‑based tokens. Tether is also seeking to raise up to $20 billion for its stablecoin business.