Tether aims at gold mining: new diversification strategy?

Tether doesn't stop. After establishing itself as a giant in the stablecoin market, the company is now exploring investments in the gold mining sector, according to PANews.

The Move of Tether

The company is in negotiations to invest in the entire gold supply chain: mining, refining, trading, and royalty companies. Interestingly, Tether is looking to participate in mining royalty agreements, a model where you invest in mines in exchange for percentages of future income.

Recent Movements:

• In June, Tether Investments disbursed $105 million to acquire a minority stake in Elemental Altus ( a gold royalty mining company listed in Toronto )
• Continue evaluating more royalty deals
• Previously negotiated with Terranova Resources (mining investment firm based in the British Virgin Islands), but did not reach an agreement.

Why this matters

Tether is already managing sophisticated operations in commodity finance, moving billions in its operating book to finance short-term commodity shipments. Additionally, it holds $8.7 billion in gold reserves in Swiss vaults as backing for its stablecoins.

And here is the fascinating part: Tether has already issued XAUt, a token backed by physical gold with a market capitalization of $880 million. Now it aims to control a part of the productive side.

The message? Tether not only wants to be an intermediary in crypto-finance but also to secure its supply chain of real assets. A typical vertical consolidation move in the sector.