Stablecoin issuer Tether is considering investing in gold mining companies to diversify its crypto profits. Gold has outperformed Bitcoin, with 37% gains YTD compared to BTC’s 22%. Tether, profitable with a $168 billion market cap, generated $5.7 billion in profits in H1 2025 and holds US Treasuries as stablecoin backing.

Tether CTO Paolo Ardoino supports gold as a safe asset and complementary to Bitcoin, comparing it to a “natural Bitcoin.” The firm already holds $8.7 billion in gold bars in a Zurich vault. Industry insiders in the gold mining sector are skeptical of Tether’s interest in gold.

Tether’s move into gold investment follows the hiring of former Trump crypto official Bo Hines. Economist Peter Schiff notes gold mining firms are lagging behind the gold rally. Tether recently acquired a stake in gold royalty firm Elemental Altus and engaged in discussions with Terranova Resources.

Tether’s XAUt token backed by physical gold has a $880 million market cap but limited adoption compared to USDT. The company’s strategy shift towards gold has raised questions in the industry. Tether’s interest in gold mining firms may signal a potential value unlocking in the sector.

Read more at Yahoo Finance: Gold Over Bitcoin? USDT Stablecoin Issuer Tether Diverts Crypto Profits to Yellow Metal