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Why The World's Biggest Stablecoin Issuer Just Invested $150M In Gold During A Market Crisis

Why The World's Biggest Stablecoin Issuer Just Invested $150M In Gold During A Market Crisis

Tether (USDT) has invested $150 million in Gold.com, taking a minority stake as it moves to expand distribution of tokenized and physical gold through both digital and traditional channels, according to a press release issued Thursday.

The deal gives Tether roughly a 12% ownership position in Gold.com and establishes a longer-term partnership intended to connect Tether’s gold-backed token, XAU₮, with a mainstream precious metals platform.

Deal Structure And Integration Plans

Tether said the partnership will integrate XAU₮ into Gold.com’s platform.

The companies also said they are exploring options that could let customers buy physical gold using digital currencies such as USD₮ and USA₮, Tether’s newly launched federally regulated, dollar-backed stablecoin.

The companies said any such features would depend on regulatory, technical, and commercial factors.

Tether CEO Paolo Ardoino said the investment reflects a long-term view of gold as a hedge rather than a short-term trade, arguing that tokenization can make gold easier to hold, transfer, and use without giving up physical backing.

Tokenized Gold Demand Rises With Market Strength

Tether framed the timing of the investment against renewed strength in gold markets, citing prices above $5,000 per ounce in recent days amid macroeconomic and geopolitical uncertainty.

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The company said the market for gold-backed stablecoins has expanded sharply over the past year, rising from roughly $1.3 billion to more than $5.5 billion in market capitalization.

Tether said XAU₮ represents more than 60% of that market.

Backing Claims And Regulatory Context

Tether said XAU₮ is backed one-to-one by physical gold, with each token representing one fine troy ounce linked to a specific London Good Delivery bar.

The company added that the product is issued under El Salvador’s Digital Asset Issuance Law and supported by approximately 140 tonnes of gold held in secure vaults, citing its latest independent attestation.

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Disclaimer and Risk Warning: The information provided in this article is for educational and informational purposes only and is based on the author's opinion. It does not constitute financial, investment, legal, or tax advice. Cryptocurrency assets are highly volatile and subject to high risk, including the risk of losing all or a substantial amount of your investment. Trading or holding crypto assets may not be suitable for all investors. The views expressed in this article are solely those of the author(s) and do not represent the official policy or position of Yellow, its founders, or its executives. Always conduct your own thorough research (D.Y.O.R.) and consult a licensed financial professional before making any investment decision.
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