Tether Becomes a Major Gold Lender With $1.5 Billion for US Bullion Dealer
Tether lends about $1.5 billion to a top US gold dealer
Tether, one of the largest companies in crypto, has emerged as a major lender in the gold market after providing about $1.5 billion in financing to a leading US bullion dealer. The dealer, Gold.com Inc., reported that Tether accounted for the majority of its precious-metal leases by the end of June.
The financing is backed by Tether's growing hoard of physical gold, which Bloomberg describes as one of the world's largest private stockpiles of the metal. Tether also bought a stake in Gold.com earlier this year, according to the report.
Key numbers
- About $1.5 billion in financing provided by Tether.
- $1.7 billion in total precious-metal leases outstanding at Gold.com at the end of June.
- $1.45 billion in payables and advances owed to Tether at the end of the reported period.
- Tether purchased a stake in Gold.com earlier this year.
- The details come from Gold.com's annual report.
What Gold.com's annual report shows
Gold.com's annual report is the primary source for the figures. It shows the dealer had $1.7 billion of precious-metal leases outstanding at the end of June, with Tether accounting for the majority of that amount. The same report lists $1.45 billion in payables and advances owed to Tether.
In gold leasing, an owner of the metal lends it out or finances a dealer in exchange for a return, similar to a loan.
A small mismatch between the figures
Bloomberg reports the financing as "about $1.5 billion," while the annual report lists $1.45 billion in payables and advances owed to Tether. The two numbers are close but not identical, and the available reporting does not explain the difference. The full Bloomberg article is largely behind a paywall, so additional detail is limited.
Why this matters
The numbers show a major crypto company operating deep inside the traditional gold market. Tether is not only holding one of the world's largest private gold stockpiles, but it is also using that position to finance a big US bullion dealer and has taken an ownership stake in that dealer. For people who follow crypto, it is a concrete example of a stablecoin issuer expanding well beyond digital assets into physical commodities and conventional lending.
