Tether, the largest stablecoin issuer in terms of USDT market cap and overall scope of operations, and a partner are reportedly planning to secure around $200 million for a digital asset treasury (DAT) company that may acquire Tether’s XAUT token.
As first reported by Bloomberg, the stablecoin-focused company and Antalpha Platform Holding, a Singapore-headquartered financial services company, are backing an initiative that is aiming to secure about $200 million for a DAT.
If this materializes, then the vehicle may use the proceeds to stockpile XAUT, which is Tether’s gold token.
Antalpha Platform is currently listed as a key partner of China based Bitmain Technologies, which is a Bitcoin (BTC) mining equipment-maker.
Bitmain reportedly supplies more than 80% of the global cryptocurrency mining machines, according to a report from the University of Cambridge Judge Business School.
Earlier this year, Tether’s management had stated that there were around 250,000 Tether Gold (XAUT) tokens that were in circulation.
These digital tokens are said to be backed by the equivalent of 7.66+ tons of gold (accurate as of Q2 of this year).
Various DATs have been established recently in an effort consistently accumulate digital tokens and enable web3 ecosystem growth for their chosen virtual currency.
It’s also worthwhile to note that Tether had acquired an 8.1% stake in Antalpha when the firm had gone public through an IPO earlier this year.
Antalpha had also stated this past month that it was working with Tether to offer XAUT-backed lending as well as infrastructure-related services.
As reported recently, Tether CEO Paolo Ardoino said they were “evaluating a raise from a selected group of high-profile key investors, to maximize the scale of the company’s strategy across all existing and new business lines (stablecoins, distribution ubiquity, AI, commodity trading, energy, communications, media) by several orders of magnitude.”
Reports are now pegging the funding round at $500 billion with a valuation of around $20 billion, according to Bloomberg. Investors would receive about 3% equity stake in the firm. The report also shared a note of caution as the deal was not yet finalized.