Tether has emerged as a major lender in the physical gold market, providing about $1.5 billion in financing to U.S. bullion dealer Gold.com. The move marks a deeper expansion of the stablecoin issuer into traditional commodities finance.
Gold.com reported about $1.7 billion in outstanding precious-metal leases at the end of June. Tether accounted for most of that financing, while Gold.com owed the company roughly $1.45 billion in payables and advances.
Tether Builds a Massive Gold Position
Tether has steadily increased its exposure to physical gold alongside its cryptocurrency business. By the end of June, the company held about 146 metric tons of gold, valued at roughly $18.8 billion based on its latest reported reserves.
The company added 14 tons during the second quarter. Its gold holdings now rank among the largest known private stockpiles outside banks and governments.
Tether funds its operations primarily through USDT, the world’s largest dollar-pegged stablecoin. It invests income generated from its reserves across assets including U.S. Treasury securities and gold.
Gold Lending Creates New Revenue Stream
The financing relationship also gives Tether a way to generate returns from its large bullion holdings. Gold loans allow dealers and other businesses to finance inventories without relying entirely on conventional dollar borrowing.
Gold.com Chief Executive Greg Roberts said the arrangement provides cheaper liquidity than some of the company’s dollar-based financing facilities.
The two companies have also agreed to trade precious metals with each other and store Tether’s gold at Gold.com’s Las Vegas facility. Gold.com operates major U.S. bullion businesses, including A-Mark Precious Metals and JM Bullion.
Tether’s move follows its broader push into commodity-trade financing. The company has previously indicated plans to expand lending across commodities, including energy and agricultural products.
The strategy could further connect cryptocurrency capital with traditional commodity markets. For Tether, the Gold.com relationship provides another avenue to deploy its growing reserves while strengthening its position in the physical gold industry.
