Tether emerges as major bullion lender with $1.5 billion Gold.com financing

Tether has emerged as a major bullion lender after providing about $1.5 billion in financing to Gold.com, making the crypto company the dominant creditor behind the US dealer’s $1.7 billion in outstanding precious-metal leases. Tether was owed roughly $1.45 billion in payables and advances from Gold.com at the end of June, according to the dealer’s annual report. The financing followed Tether’s purchase of a 13% stake in Gold.com for $150 million earlier this year. The stablecoin issuer has also built one of the world’s largest private gold hoards. Its holdings stood at 146 tons in June, worth about $20 billion at current prices, after a buying spree that surpassed almost every central bank last year. Much of Tether’s purchasing power comes from USDT, the world’s largest dollar-pegged stablecoin. Tether issues the tokens in exchange for dollars and invests the proceeds in assets including US Treasuries and gold. The companies have also agreed to buy and sell precious metals to each other and to store Tether’s metal at Gold.com’s Las Vegas facility. Gold.com owns US bullion brands including A-Mark Precious Metals and JM Bullion. Gold.com Chief Executive Officer Greg Roberts said the...