Tether Seeks $200 Million for Tokenized Gold Treasury Company

Tether is working with financial services firm Antalpha Platform Holding to raise at least $200 million for a new digital asset treasury company focused on tokenized gold, according to a Bloomberg report citing sources familiar with the matter.

If successful, the new entity would accumulate XAUt tokens, which represent ownership of physical gold, marking a significant expansion beyond the company’s flagship USDT stablecoin, which has a $174 billion supply.

Antalpha Platform, a Singapore-based firm with close ties to Chinese Bitcoin mining hardware manufacturer Bitmain Technologies, plans to add Tether Gold to its asset management platform and create a network of secure storage facilities in key global markets for direct redemption of tokens into bullion.

Tether Gold currently has a market capitalization of approximately $1.5 billion, giving it the dominant position in the tokenized gold sector. Each XAUt token represents ownership of physical gold bars stored in secure vaults.

Asset manager Cohen & Company has been retained to advise on the transaction, according to Bloomberg. The talks remain private, and terms have not been finalized.

The initiative follows a broader trend in the cryptocurrency industry, with the sector seeing roughly 80 new digital asset treasury companies launched so far this year. Tether previously invested in bitcoin treasury company XXI Capital alongside Bitfinex and SoftBank.

Tether CEO Paolo Ardoino has been vocal about viewing gold, Bitcoin, and land as strategic hedges. As of June, the company held $8.7 billion worth of gold on its balance sheet.

Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.