Tether Deepens Push Into Gold Lending With $1.5 Billion Financing Deal for Gold.com
Key Takeaways
- •Tether supplied most of Gold.com's roughly $1.7 billion in outstanding precious-metal leases as of the end of June, with the dealer owing the stablecoin issuer about $1.45 billion in payables and advances.
- •By the end of June, Tether held approximately 146 metric tons of gold valued at about $18.8 billion after adding 14 tons during the second quarter, placing its stockpile among the largest known private holdings outside banks and governments.
- •Gold lending gives Tether a revenue stream because physical bullion produces no yield on its own, and Gold.com's chief executive said the financing provides cheaper liquidity than some of the dealer's dollar-based facilities.
- •The agreement extends beyond financing, as the two companies will trade precious metals with each other and store Tether's gold at Gold.com's Las Vegas facility, which operates A-Mark Precious Metals and JM Bullion.
- •Tether has signaled plans to broaden its commodity-trade lending beyond gold into areas such as energy and agricultural products, potentially linking cryptocurrency capital with traditional commodity markets.
Tether has become a major lender in the physical gold market, extending roughly $1.5 billion in financing to U.S. bullion dealer Gold.com. The arrangement marks a deeper expansion by the stablecoin issuer into traditional commodities finance, a form of secured lending in which bullion dealers finance metal inventories rather than relying solely on conventional dollar credit.
Gold.com reported about $1.7 billion in outstanding precious-metal leases at the end of June, and Tether accounted for most of that financing. 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 according to its latest reported reserves. It added 14 tons during the second quarter, and its 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, and invests income generated from its reserves across assets including U.S. Treasury securities and gold.
Gold Lending Creates a New Revenue Stream
Physical gold generates no yield on its own, so lending gives Tether a direct way to earn returns from bullion it already holds. 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 to store Tether's gold at Gold.com's Las Vegas facility, tying the financing arrangement to operational ties on both the trading and custody sides. Gold.com operates major U.S. bullion businesses including A-Mark Precious Metals and JM Bullion.
A Broader Commodities Push
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, a strategy that could further connect cryptocurrency capital with traditional commodity markets. How those plans take shape beyond gold will be the next indicator of how far Tether intends to extend its commodities lending business.
For Tether, the Gold.com relationship provides another avenue to deploy its growing reserves while strengthening its position in the physical gold industry.
