The Key Points
- Tether has invested over 100 millions in the gold trading and mining industry.
- XAUT is backed up by gold reserves to ensure security.
- Elemental Altus has merged with EMX and a number of other companies.
The Tether Group expands into gold mining with over 100 million in investments
The Financial Times reports that Tether, which issuing the USDT stablecoin has made strategic investments in the gold-mining industry. It plans to invest over $100 million.
The company is in talks with several counterparties, and it aims to make investments across the gold production chain – from mining ore to financing and trading companies who purchase deposits for royalties.
Strategic Partnerships and Investments
Tether had previously invested $89 millions in Elemental Altus. This firm finances gold-mining companies for royalties or preferential gold purchasing terms.
Tether signed a new contract on September 4 to buy an extra $100 million worth of shares. Elemental Altus merged into EMX and expanded its operating capacity.
It has also kept a large reserve of gold that is used as collateral to back the XAUT Stablecoin. This strengthens the backing for this stablecoin.
Tether has faced skepticism despite its ambitious plans to enter the gold market. Insiders in the industry said that Tether “hardly has any strategy” and just “likes gold.”
Terranova Resources also had discussions with Tether, but these talks failed. These negotiations have not been publicly addressed by the company.
What This Means
Tether’s investments can reshape gold mining and the stablecoin industry by:
- Strengthen XAUT collateral by adding real gold reserves
- Increased influence in the production of gold and its trading chains.
- Forming partnerships with major players in the gold sector.
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