Tether, led by CEO Paolo Ardoino, has invested in gold mining, acquiring stakes in Elemental Altus, a Toronto-listed gold royalty company, to deepen its exposure to gold assets.
This investment strengthens Tether’s strategy to hedge stablecoin reserves amid increasing gold price volatility, impacting the broader cryptocurrency market.
Tether’s move into gold mining impacts its XAU₮ token, which is backed by physical gold reserves valued at $880 million. The broader crypto market sees this as a hedge against macroeconomic risks, as global uncertainties persist.
Financial analysts observe that Tether’s strategy may increase gold volatility amid US trade tariffs. Paolo Ardoino, CEO, Tether, remarked, “Gold is a complement to Bitcoin,” emphasizing Tether’s strategic rationale for gold as a safe haven. This shift shows Tether’s intent to stabilize its operations while maintaining adaptability to financial fluctuations in the cryptocurrency space.
Stablecoin-backed investments in real-world assets are not new; for example, Circle’s exposure to US Treasuries. Tether’s direct involvement in mining marks its novel embrace of the raw commodities supply chain.
Experts from Kanalcoin suggest Tether’s strategy could influence other issuers to pursue commodity asset classes. This move might set a precedent for adapting stablecoin strategies within the broader crypto-financial ecosystem.
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