Tether, known for its stablecoin offerings, has secured a 12% stake in Gold.com for $150 million as it seeks to deepen its foothold in the tokenized gold market. This investment not only reinforces a long-term collaboration but also aims to integrate Tether's gold-backed digital asset, XAU₮, into Gold.com’s channels. The goal is to create innovative on-ramps that link physical gold and digital currencies.
Recently, the price of gold experienced a significant rise, reaching over $5,500 per ounce, before pulling back to around $4,700. The market for gold-backed stablecoins has seen exponential growth, tripling within a year to $5.5 billion, with XAU₮ claiming over 60% market share and $2.4 billion in circulation, surpassing its competitor PAXG.
Tether assures that each XAU₮ token is fully backed by allocated physical gold stored securely in vaults, affirming daily attestations per El Salvador's Digital Asset Issuance Law. Each token represents one fine troy ounce connected to a London Good Delivery bar, backed by approximately 140 tonnes of gold.
This strategic move reflects Tether's commitment to long-term market stability rather than speculative trading. The intention is to provide gold exposure as a hedge against the increasing volatility in today’s financial landscape. Furthermore, Tether aims to bridge traditional finance with the crypto world, making gold accessible through real-world retail and institutional platforms.
Discussions are underway regarding using Tether’s USD₮ and the new USA₮ stablecoins for gold transactions, paving the way for more seamless integration of digital assets with physical commodities.