The chief executive of stablecoin issuer Tether says that the firm is investing in gold mining as a means of obtaining maximum stability for its asset-pegged digital asset products.
In a new post on X, Tether CEO Paolo Ardoino confirms that the company is venturing outside the world of digital assets, calling it “stability maximalism.”
-->Though Ardoino agrees that Bitcoin (BTC) is better than gold, he says that diversification is important and that gold could be more useful during tumultuous economic times.
In a recent report by the Financial Times (FT), several people familiar with Tether’s thinking said that the company was in talks with gold mining and investment companies as a means of diversifying its reserve assets.
According to the article, Tether already has $8.7 billion worth of gold bars held in a bank in Zurich, which it already uses as collateral for USDT, the most popular dollar-pegged crypto asset on the market.
Tether also recently unveiled that it invested $100 million into the precious metals royalty firm Elemental Atlus as a means of additional gold exposure. According to the press release, Tether purchased 75 million shares of the company.
At the time, Ardoino said Elemental Atlus fit in with Tether’s vision for Tether Gold (XAUT), its gold-backed stablecoin product.
“Elemental’s royalty model provides diversified exposure to gold production around the world, aligning strategically with our vision for Tether Gold and future commodity-backed digital asset infrastructure.”
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