In an ambitious move to broaden its horizons, Tether, the company widely recognized for its pioneering USDT stablecoin, is teaming up with Antalpha, a firm specializing in financing for crypto miners, to establish a robust digital asset treasury for tokenized gold. According to a report from Bloomberg, the dynamic duo is eyeing a substantial capital raise of at least $200 million to bring this vision to life. Sources close to the matter revealed that this new financial vehicle is set to hoard Tether Gold (XAUT), a blockchain-based token that enjoys the backing of physical gold bars securely held in a Swiss vault.
Tether’s Bold Venture into Tokenized Gold
Tether Gold isn’t just any tokenized gold offering—it’s the largest one available, boasting a hefty market capitalization nearing $1.5 billion. This venture marks a significant step in Tether’s journey to diversify its portfolio beyond its flagship USDT, which remains the largest stablecoin in circulation with a staggering $174 billion supply. By venturing into tokenized gold, Tether is tapping into a market that combines the stability of gold with the innovative edge of blockchain technology.
The collaboration with Antalpha was solidified with the announcement of an expanded partnership earlier this week. This partnership is set to pave the way for a dedicated hub offering XAUT-backed lending, custody, and token redemption services. Antalpha has expressed plans to work with partners to establish vaults in key financial centers. This would allow users to seamlessly redeem their digital tokens for actual physical gold, thus bridging the gap between digital assets and tangible wealth.
Antalpha’s Strategic Role
Antalpha’s involvement in this venture is noteworthy. Known for its role as a principal lender to Bitmain, a leading Chinese crypto mining equipment manufacturer, Antalpha offers a suite of financial services including supply chain and margin loans. Its strategic positioning in the crypto mining ecosystem provides it with the expertise and network necessary to support Tether’s ambitious plans.
The partnership between Tether and Antalpha is not just a financial collaboration; it’s a strategic alignment that leverages the strengths of both entities. With Antalpha’s experience in the crypto mining sector and Tether’s innovative approach to digital assets, this venture is poised to make significant waves in the market.
Tether’s Expanding Horizons
Tether’s foray into tokenized gold is part of a broader strategy to expand its influence across various sectors. The company has been actively investing in diverse areas such as bitcoin mining, payments, energy, and artificial intelligence. Earlier this year, Tether emerged as a lead investor in XXI Capital, a bitcoin treasury firm, alongside Bitfinex—a company with which it shares key executives and ownership—and SoftBank.
Moreover, Tether is reportedly seeking to raise funds at a staggering $500 billion valuation to fuel its expansion. This ambitious target underscores Tether’s commitment to solidifying its position as a leader in the digital asset space, not just through stablecoins but across a wide range of asset classes.
Paolo Ardoino’s Vision for Gold
At the helm of Tether’s strategic initiatives is CEO Paolo Ardoino, a staunch advocate for gold as a hard asset. Ardoino has been vocal about the potential of gold-backed digital assets to offer a stable and secure investment alternative in the volatile cryptocurrency market. As of June, Tether held $8.7 billion in gold on its balance sheet, reflecting Ardoino’s belief in the enduring value of the precious metal.
Ardoino’s vision aligns with a growing trend among investors seeking refuge in gold amidst global economic uncertainties. By combining the security of gold with the transparency and efficiency of blockchain technology, Tether Gold presents a compelling proposition for both traditional investors and crypto enthusiasts.
A Balanced Perspective
While the prospects for Tether’s tokenized gold venture are exciting, it’s essential to consider the potential challenges and risks. The regulatory landscape for digital assets continues to evolve, and Tether, like many other players in the space, must navigate these complexities to ensure compliance and sustainability.
Moreover, the success of this venture hinges on market acceptance and the ability to effectively integrate digital tokens with physical assets. As with any innovative financial product, there are inherent risks, and Tether will need to demonstrate the robustness and reliability of its offering to gain the trust of investors.
In conclusion, Tether’s collaboration with Antalpha to launch a tokenized gold treasury represents a bold and strategic move to expand its footprint in the digital asset ecosystem. By harnessing the stability of gold and the innovations of blockchain, Tether is poised to offer a unique and valuable proposition to investors. As the venture unfolds, all eyes will be on Tether and Antalpha to see how they navigate the challenges and opportunities that lie ahead.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
