Karla Barker 
New Gold-Backed Digital Treasury Takes Shape
Tether, the company behind the massive USDT stablecoin, is reportedly working with Antalpha to raise at least $200 million for a new digital asset treasury focused on tokenized gold. This move represents another step in Tether’s expansion beyond its core stablecoin business.
The planned vehicle would stockpile XAUT, which is a blockchain-based token backed by physical gold bars stored in a Swiss vault. XAUT currently stands as the largest tokenized gold offering in the market with a market capitalization approaching $1.5 billion. That’s not an insignificant amount, though it pales in comparison to Tether’s main USDT token, which has a supply of about $174 billion.
Partnership Deepens Gold Tokenization Efforts
This fundraising effort follows an expanded partnership between Tether and Antalpha that was announced earlier this week. The companies plan to launch a dedicated hub for XAUT-backed lending, custody, and token redemption services. Antalpha indicated they intend to work with partners to establish vaults in major financial hubs, which would allow users to redeem their digital tokens for actual physical gold.
Antalpha is known primarily as a key lender for Bitmain, the Chinese crypto mining equipment manufacturer. They specialize in providing supply chain and margin loans within the crypto mining sector. This background gives them relevant experience in handling large-scale physical assets that back digital tokens.
Tether’s Broader Expansion Strategy
Tether has been steadily expanding its operations beyond just issuing USDT. The company has made investments across various sectors including bitcoin mining, payments infrastructure, energy projects, and artificial intelligence. Earlier this year, Tether participated as a lead investor alongside Bitfinex and SoftBank in bitcoin treasury firm XXI Capital.
There are also reports that Tether is seeking to raise funds at a staggering $500 billion valuation to fuel this expansion. That number seems ambitious, but it shows the scale of their ambitions.
Paolo Ardoino, Tether’s CEO, has been quite vocal about his support for gold as a hard asset. The company already holds $8.7 billion worth of gold on its balance sheet according to their June attestation. This new venture appears to be an extension of that commitment to gold-backed digital assets.
Market Implications and Future Outlook
The move into tokenized gold represents an interesting development in the broader digital asset space. While stablecoins like USDT are backed by traditional financial instruments and cash equivalents, gold-backed tokens offer exposure to a different type of asset class. Some investors might prefer the perceived stability of gold compared to fiat currencies, especially given ongoing concerns about inflation and economic uncertainty.
However, the success of this venture will depend on several factors. The ability to reliably redeem tokens for physical gold, the security of the vaults, and regulatory acceptance will all play crucial roles. The partnership with Antalpha suggests they’re taking the physical infrastructure seriously.
It’s worth noting that tokenized gold isn’t a new concept, but having a company of Tether’s scale and resources behind it could potentially bring more mainstream attention and adoption to this segment of the market. Whether this becomes a significant part of Tether’s business or remains a niche offering remains to be seen.