TLDR
- Tether partners with Antalpha to raise $200M for a tokenized gold treasury project.
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The new project will focus on Tether Gold (XAUT), the largest gold-backed token on the market.
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Tether plans to expand its digital asset portfolio with tokenized gold amid rising demand.
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The partnership comes after Tether’s previous investments in Bitcoin and other digital assets.
Tether, the issuer of the world’s largest stablecoin USDT, has announced a partnership with crypto mining financing firm Antalpha to raise $200 million for a new digital asset treasury. This initiative will focus on accumulating Tether Gold (XAUT), a blockchain-based token backed by physical gold. The goal is to expand Tether’s presence in the rapidly growing market for tokenized real-world assets, particularly gold.
Tether’s XAUT token, launched in 2020, is currently the largest gold-backed token by market capitalization, which is nearing $1.5 billion. The token represents ownership of physical gold bars held in secure Swiss vaults, offering a unique way to invest in gold using blockchain technology. This partnership with Antalpha underscores Tether’s strategic focus on diversifying its holdings and offering more secure, tokenized investment options.
Role of Antalpha in the Partnership
Antalpha, a financial services firm linked with the crypto mining giant Bitmain, will play a key role in the project. Known for its expertise in crypto mining and lending, Antalpha has established itself as a trusted partner for Tether.
The partnership will see the creation of a vehicle to stockpile XAUT, allowing both institutional and retail investors to participate in the growing demand for tokenized gold.
The deal also includes plans to offer lending services backed by XAUT, expanding Tether’s offerings in the digital asset space. These services will allow users to access liquidity while holding their gold-backed tokens. Antalpha has already started working with Tether to create a secure infrastructure for token redemption, ensuring that investors can convert their digital assets into physical gold when needed.
Tether Growing Digital Asset Portfolio
Tether’s expansion into the gold market represents a broader trend of the company diversifying its portfolio beyond USDT and Bitcoin. In addition to its investment in tokenized gold, Tether has also made significant strides in the cryptocurrency mining sector. The company recently participated in the launch of XXI Capital, a Bitcoin treasury firm, alongside Bitfinex and SoftBank.
Paolo Ardoino, CEO of Tether, has been a vocal proponent of gold as a store of value, especially in times of economic uncertainty. Tether’s holdings in gold have already reached $8.7 billion, according to its June attestation, making it one of the largest holders of physical gold in the digital asset space.
The new $200 million project will further strengthen Tether’s position in the gold-backed digital asset market and provide investors with more secure investment options.
Tether’s Strategy Amid Rising Demand for Tokenized Gold
The growing demand for tokenized gold is driven by various factors, including geopolitical tensions and concerns about inflation. As traditional assets like gold continue to appreciate, tokenized versions offer a more accessible and secure way for investors to gain exposure to the metal.
By partnering with Antalpha, Tether aims to capitalize on this trend and provide a more regulated and transparent investment vehicle for global investors.
The partnership comes at a time when the tokenized gold market is gaining momentum. With regulatory clarity around digital assets becoming more prevalent, tokenized gold is positioned to become a mainstream investment product. Tether’s entry into this space is expected to attract institutional investors looking for stable and secure digital assets.
