Tether is working with Antalpha, a crypto‑finance firm with close ties to Bitcoin mining giant Bitmain, on plans to raise at least $200 million for a new digital asset treasury that would stockpile tokenized gold, according to people familiar with the talks cited by Bloomberg.
The vehicle would be built around Tether Gold (XAU₮), the company’s blockchain‑based token backed by bullion held in Swiss vaults. Each token represents one troy ounce of gold, and the product has grown into the largest tokenized gold offering in circulation with a market value of nearly $1.5 billion.
The move would deepen Tether’s push into gold at a time when tokenized commodities are gaining traction. Demand for blockchain‑based gold has picked up as the metal trades at record highs, with investors looking for ways to combine the liquidity of digital tokens with the stability of physical reserves.
Antalpha is best known as a lender to the mining industry. The firm provides supply‑chain financing for hardware purchases and margin loans collateralized by crypto, often working alongside Bitmain. By linking up with Tether, it is looking to extend its reach into real‑world assets.
The two companies already announced a partnership earlier this week to build a dedicated hub for XAU₮ lending, custody and redemption. Antalpha said it intends to set up vaults in financial centers where clients will be able to redeem tokens for physical gold, addressing one of the biggest hurdles for asset‑backed tokens: how to turn them back into the underlying metal at scale.
Tether is best known for issuing USDT, the world’s largest stablecoin, with supply topping $174 billion. The business has become a cash‑generating powerhouse thanks to its holdings of U.S. Treasuries, and the company has been redeploying that income into a broadening range of ventures.
Recent deals include investments in energy and artificial intelligence projects, as well as backing XXI Capital, a bitcoin treasury firm launched this year with SoftBank and Bitfinex, Tether’s sister exchange. XXI Capital’s mandate is to hold tens of thousands of bitcoins for long‑term reserve purposes.
Paolo Ardoino, Tether’s chief executive, has been outspoken about gold as a strategic asset. Tether disclosed holdings of $8.7 billion in bullion on its balance sheet in its June attestation. The new treasury plan would create a dedicated structure to expand its footprint in tokenized metals.
A gold‑backed digital treasury would add another layer of legitimacy to the tokenized commodities market, which has hovered just under $3 billion in total size, led by XAU₮ and rival PAX Gold. Institutional investors have been cautious to enter, often citing limited liquidity and redemption options. A vehicle capitalized at $200 million or more could start to address those concerns.
For Antalpha, the partnership is a way to diversify beyond mining loans, a business that is cyclical and capital‑intensive. For Tether, it strengthens the pitch that its tokens are not just dollar substitutes but gateways to a wider set of asset classes.
The talks remain at an early stage, and details such as structure, custody arrangements and investor participation have yet to be disclosed. But the message is clear: Tether is betting that gold on chain is ready for prime time.