Tether’s Reputation Tested as It Pushes Into New Markets

Tether already has deep ties to gold through its tokenized bullion product, Tether Gold (XAUT). More than 250,000 tokens are currently circulating, each backed by reserves stored in Swiss vaults and redeemable for physical bars. But sources familiar with the company’s plans told the Financial Times that Tether has been weighing investments across the entire supply chain — not just holding gold, but also moving into mining, refining, and trading.

That strategy would build on a deal struck earlier this year, when Tether snapped up a 33% stake in Canadian royalty firm Elemental Altus Royalties Corp., giving it exposure to precious metals production across several continents.

Industry Reactions

For the gold sector, Tether’s growing interest has been met with skepticism. Mining veterans describe the company as unpredictable and difficult to read, questioning whether it truly has a roadmap or is simply using its immense profits to buy influence. “They like gold. I don’t think they have a strategy,” one executive told the FT. Another went further, calling Tether “the weirdest company I have ever dealt with.”

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A Well-Timed Pivot

The timing of this potential expansion is striking. Gold has rarely been more valuable, with spot prices surging to an all-time high of $3,650 on Friday afternoon. Tether CEO Paolo Ardoino appeared to hint that the rumors are accurate, posting the cryptic phrase “Stability maximalism” in response to news of the report.

If the company follows through, it would represent one of the most unusual crossovers yet between crypto and commodities — a stablecoin issuer inserting itself into one of the oldest and most conservative markets on Earth. Whether traditional gold players embrace or resist this newcomer remains to be seen.

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