Tether Deploys $23 Billion Gold Reserve Via Bullion-Backed Loans
Stablecoin giant Tether is activating its massive gold stockpile through bullion-backed lending, signaling a major strategic pivot.
Tether, the company behind the world's largest stablecoin, is moving to put a $23 billion gold reserve to work by offering bullion-backed loans, CoinDesk reports. The move marks a significant strategic shift for the crypto firm, which has long held substantial commodity reserves but had largely kept them as passive holdings rather than income-generating assets.
By using its gold stockpile as collateral infrastructure for lending operations, Tether is effectively bridging traditional commodity finance with the digital asset ecosystem. Bullion-backed loans are a well-established instrument in conventional banking, allowing borrowers to access liquidity without liquidating physical metal positions — a model Tether appears ready to import into the crypto-native lending space.
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The scale of the reserve involved underscores Tether's ambitions beyond stablecoin issuance. A $23 billion gold position places the company among the more significant non-sovereign gold holders globally, and activating even a fraction of that through lending could generate meaningful yield while deepening Tether's footprint in structured finance.
The timing is notable given renewed institutional appetite for gold as a safe-haven asset amid persistent macroeconomic uncertainty. Tether's entry into commodity-backed lending could attract borrowers seeking alternatives to traditional bank credit lines, particularly in markets where access to conventional financial infrastructure remains limited.
Continue reading at CoinDesk.
