Tether Gold Funding: Tether, Antalpha Seek $200 Million
Background on Tether Gold Funding
Leading stablecoin issuer Tether is currently engaged in talks with Antalpha Platform Holding to secure at least $200 million in fresh capital, according to sources familiar with the matter. The aim of this Tether Gold funding is to increase inventory for XAUt, Tether’s tokenized gold product, which is backed by physical gold.
Tether is well known for issuing USDT, the world’s dominant stablecoin, while its partner Antalpha is a financial services firm with deep connections to Bitmain Technologies Ltd.—a Beijing-based company that supplies an estimated 82% of cryptocurrency mining hardware globally. Cohen & Co. is reportedly advising on the funding deal, though neither Tether, Antalpha, nor Cohen & Co. have commented publicly on the negotiations. Tether did refer to a prior announcement highlighting its collaboration with Antalpha.
Recent Developments and Market Demand
The Tether Gold (XAUt) token was launched in 2020 and provides holders with digital tokens representing underlying physical gold. Its market capitalization stands at approximately $1.5 billion. Antalpha recently revealed plans to broaden its work with Tether by setting up physical gold vaults in major international financial hubs and enabling collateralized loans for XAUt holders.
According to Cryptonews.net, demand for gold has surged by 46% this year, a trend driven by global economic uncertainty and inflation concerns. This spike has translated into doubled interest in Tether Gold funding, as investors seek alternative stores of value.
Potential Impact and Future Plans
Tether’s latest bid to raise $200 million is part of a larger strategy. Previous reports indicate that Tether has contemplated raising up to $20 billion to boost its primary stablecoin operations, which could value the company at $500 billion should these plans come to fruition, placing it among the world’s highest-valued private entities.
With Tether Gold funding on the rise, the company hopes to better serve growing demand for digital assets linked to tangible reserves. Antalpha’s expanded operational role in providing secure storage and financial services for XAUt holders further positions both companies at the center of innovation in the tokenized asset sector.
What’s Next for Tether Gold
If successful, the new capital will allow Tether to further stock its tokenized gold product and support its broader ambitions in the stablecoin market. Analysts are watching how this development may influence the intersection of digital currencies and traditional commodities.
For updates on the evolution of stablecoins and tokenized assets, visit the cryptocurrency news section.
Sources
Reporting via Cryptonews.net