Tether to use $23 billion gold reserve for bullion-backed loans

Tether is beginning to use its reported $23 billion gold stockpile as collateral for bullion-backed loans, according to the source. The move gives the stablecoin issuer a way to put part of its gold reserves to work rather than holding them only as balance-sheet assets.

The development matters because it shows how one of crypto’s largest companies is linking digital-asset business with traditional commodity finance. For readers and market participants, it adds another example of how stablecoin issuers are expanding their treasury and reserve management strategies beyond cash and short-term instruments.

Gold-backed lending can also be relevant for counterparties and lenders looking for collateralized exposure tied to a physical asset. In Tether’s case, the reported reserve size suggests it has the scale to participate in this market in a meaningful way.

The move comes as Tether continues to operate at the intersection of crypto, reserve management and broader financial markets. While the source does not provide further details on loan terms or counterparties, the arrangement underscores the company’s effort to make use of its non-crypto assets.

For the crypto ecosystem, the story is another sign that large stablecoin issuers are increasingly acting like diversified financial firms, not just token operators. That shift may continue to shape how the market thinks about reserve composition, liquidity and the role of real-world assets in digital finance.