Tether, the issuer behind the well-known USDT stablecoin, is venturing into the realm of tokenized gold by collaborating with the financing firm Antalpha. According to a report from Bloomberg, the partnership aims to secure at least $200 million to establish a digital asset treasury focused on tokenized gold.
The forthcoming financial vehicle is set to accumulate XAUT, a blockchain-based token representing ownership of physical gold bars stored securely in a Swiss vault. Currently, XAUT stands as the dominant player in the tokenized gold market, boasting a market capitalization close to $1.5 billion.
Antalpha has made a name for itself as a prominent lender to Bitmain, a major player in the crypto mining sector, and provides various financial services including supply chain and margin loans. The establishment of this new venture comes on the heels of an expanded partnership between Tether and Antalpha, which was announced earlier this week. This strategic alliance is directly aimed at launching a specialized hub for lending, custody, and redemption services tied to XAUT.
In their recent announcement, Antalpha indicated plans to collaborate with additional partners to create vault facilities in significant financial centers worldwide. These vaults will enable users to exchange their digital tokens for tangible gold, enhancing accessibility to physical assets backed by blockchain technology.
Tether’s ambition doesn’t stop at tokenized gold. The company has broadened its horizons beyond its flagship USDT, which currently remains the largest stablecoin with a market supply of around $174 billion. Tether’s expanding portfolio includes investments in sectors such as bitcoin mining, payments, energy, and artificial intelligence. Notably, Tether acted as a lead investor alongside Bitfinex and SoftBank in the launch of XXII Capital, a bitcoin treasury firm initiated earlier this year.
Paolo Ardoino, Tether’s CEO, has consistently championed the value of gold as a stable asset. The latest attestation from June revealed that Tether holds approximately $8.7 billion in gold on its balance sheet, underscoring its commitment to gold assets.
The intent behind this new treasury initiative aligns with Tether’s broader strategy of increasing its valuation, as it reportedly seeks to raise funds aiming for a $500 billion valuation that would bolster further expansion efforts.
As Tether and Antalpha embark on this strategic endeavor, the development of a tokenized gold treasury may reshape how individuals and institutions invest in gold through the lens of blockchain technology, thereby fostering greater liquidity and accessibility in the gold investment space.
