Tether and Antalpha Set $200M Plan to Expand Gold Token Reach

• Tether and Antalpha plan to raise $200M for a digital treasury to accumulate XAUT, expanding their gold-backed token strategy.
• Antalpha will build global vaults and lending services for XAUT, while Tether strengthens reserves beyond US treasuries.

Tether is back in the spotlight after recent reports suggested the company is in talks with Antalpha Platform Holding to raise at least $200 million.

According to Bloomberg, this substantial funding is intended to form a digital asset treasury company that will accumulate Tether Gold (XAUT), a blockchain-based gold token.

The report states that discussions are still in the early stages, covering transaction structures and how physical gold custody will be managed. However, this move clearly underscores Tether’s ambition to expand its footprint beyond the USDT stablecoin, which already dominates the market.

Strengthening Ties Through Gold Tokenization

The collaboration between Tether and Antalpha is nothing new. The two have previously launched a Real World Asset Hub (RWA Hub) that offers XAUT-based lending services, custody infrastructure, and a gold token exchange network.

In fact, Antalpha plans to build physical vaults in major global financial centers so users can exchange their tokens for “London Good Delivery” gold bullion. This way, XAUT won’t just be a digital asset on a screen, but can actually be claimed as physical gold.

Tether itself already owns approximately 8.1% of Antalpha’s shares, a move that further strengthens the relationship between the two. Antalpha, known for its close ties with crypto mining equipment giant Bitmain, now has a greater opportunity to position itself as a major player in gold tokenization.

Furthermore, this fundraising plan gives XAUT the potential to elevate from being a mere alternative product to an instrument sought after by global investors.

Furthermore, CNF previously reported that in early September, Tether was also preparing to increase its stake in a Canadian gold company to 37.8% through a $100 million investment.

This investment demonstrates that Tether’s diversification strategy into gold extends beyond digital reserves to include traditional gold royalties. Clearly, the company’s direction is increasingly entrenched in precious metals, which have long been considered classic hedge assets.

Energy, Bitcoin, and the Future of Tether’s Strategy

Looking further, Tether’s strategy extends beyond gold. Last July, they also partnered with Adecoagro in Brazil to mine Bitcoin using renewable energy from biomass and bioenergy.

This project has the dual goal of optimizing excess energy while also providing a way to diversify revenue. Tether even encourages the use of open-source software for Bitcoin mining, which could make mining practices more transparent and efficient.

However, several questions remain. What will the legal structure of the new company, which will manage $200 million, be like? What will be the audit mechanism for its gold reserves? Will XAUT be able to provide sufficient liquidity to compete with other gold tokens like PAX Gold?

Regulatory challenges will also clearly arise, given that the combination of crypto assets and physical commodities is always under scrutiny by authorities in various countries.