Tether expands beyond stablecoins, buying tons of gold and Bitcoin to build a diversified financial empire.

Tether is expanding beyond its core stablecoin business by acquiring gold and Bitcoin, according to a report originally published by Pluang. The moves indicate an effort to build a more diversified financial operation that includes assets outside tokens designed to track traditional currencies.

Tether is best known for issuing stablecoins, a category of crypto assets generally designed to maintain a stable value by referencing an asset such as the U.S. dollar. Gold and Bitcoin represent different types of exposure: gold is commonly viewed as a traditional store-of-value asset, while Bitcoin is the largest and most established cryptocurrency by market recognition.

The reported purchases place Tether’s strategy in the broader context of crypto companies seeking to broaden their balance-sheet assets and business lines. Diversification can increase exposure to multiple markets, but it also means performance may be affected by changes in the value of Bitcoin and gold.

The development underscores how major stablecoin issuers can have relevance beyond the tokens they issue. Their asset holdings, reserve practices and expansion into other markets are closely watched because stablecoins are widely used across cryptocurrency trading, payments and decentralized-finance activity.