Tether and Antalpha will raise $200 million for a gold-backed digital asset.

Tether's Gold-Backed Digital Asset Project

Tether, in collaboration with cryptocurrency mining finance firm Antalpha, aims to raise at least 200 million dollars to create a new treasure focused on tokenized gold. This information is based on a report by Bloomberg.

According to the plan, the new treasury will store blockchain-based tokens backed by physical gold, called Tether Gold (XAUT). XAUT is the largest tokenized gold product on the market, with a market capitalization of approximately 1.5 billion dollars. Tether had announced an expanded partnership to offer XAUT-backed lending, custody, and token buyback services.

Strategic Partnership with Antalpha

Antalpha is known as a significant credit provider for the Chinese cryptocurrency mining equipment manufacturer Bitmain, offering supply chain and margin credit services. The partnership announced last Monday will allow users to exchange their digital tokens for physical gold. Paolo Ardoino, Tether's CEO, strongly supports gold as a tangible asset.

Tether continues to grow by investing in areas such as Bitcoin mining, payments, energy, and artificial intelligence alongside its largest stablecoin, USDT. Earlier this year, Tether participated as a lead investor in the Bitcoin treasury firm XXI Capital along with Bitfinex. Additionally, Tether’s treasury holds gold worth 8.7 billion dollars.