DL Holdings Group Limited and Antalpha Collaboration
DL Holdings Group Limited, based in Hong Kong, has entered into a significant collaboration with Antalpha, a global player in digital asset financial services. This partnership, estimated to be worth up to $200 million, seeks to integrate traditional gold investments with Bitcoin mining operations under a novel dual strategy that straddles both the conventional and digital finance landscapes.
Investment and Strategy
The venture commenced with a substantial initial investment of $5 million in Tether Gold (XAUT), with DL Holdings planning to acquire and distribute a total of 100 million XAUT within the next year. Tether’s XAUT tokens are linked to physical gold stored in secure vaults in London, making gold investments more approachable for both institutional and retail investors through brokerage services and structured investment products.
Antalpha will enhance this project by offering liquidity, custody services, and XAUT-backed lending options through its RWA Hub platform. Moreover, the firm is looking to set up physical vaults in key financial hubs worldwide to streamline the redemption of gold.
CEO Insights and Market Context
In what has been dubbed a fundamental shift in how value can be both preserved and exchanged, DL Holdings’ CEO Andy Chen remarked, “We’re developing both the value store and the infrastructure of the digital financial world.”
This partnership, which was first revealed in early October, positions DL Holdings as Tether Gold’s primary strategic partner within the Asia-Pacific region, where they will jointly devise yield-enhancing products and structured lending solutions for affluent clients.
With gold prices recently surging over 60% in just this year amid rising global inflation and geopolitical tensions, the tokenized gold market has also expanded greatly, surpassing $3 billion and becoming the preeminent segment within tokenized real-world assets (RWAs).
Bitcoin Mining Infrastructure Investment
In addition to this venture, DL Holdings is investing an extra $100 million to bolster its Bitcoin mining infrastructure. They have acquired several thousand high-performance mining units and are set to purchase around 3,000 Antminer S21s from Bitmain. Currently, the company reports an annual yield of approximately 350 BTC but aims to ramp that up to 1,500 BTC.
Antalpha, as a crucial partner, will provide financial backing and technical expertise, further establishing transparent access routes for Bitcoin to a range of investors. Chen highlighted the synergistic potential of their gold and Bitcoin strategies, noting, “By investing in large-scale hashrate, we are reinforcing the foundations of digital assets.”
The Golden Triad and Future Prospects
Antalpha, which partners with Bitmain—the largest mining equipment manufacturer globally, holding a share of about 75% in the market—forms part of what is described as a “golden triad” among DL Holdings, Antalpha, and Bitmain. This collaboration aims to usher in a new era for Bitcoin mining in Asia.
DL Holdings has been at the forefront of digital asset innovation, having previously tokenized interests in companies like ByteDance and Kraken, and turning asset properties such as the DL Tower in Hong Kong and ONE Carmel in the USA into RWAs. Their efforts align with Hong Kong’s vision of establishing itself as a digital finance powerhouse, solidifying DL Holdings’ position as a trailblazer in integrating traditional assets with blockchain technology.
