Tether Invests $150M in Gold.com to Expand Gold Market Access | USDT & XAUT Integration

Tether, the issuer of the most popular stablecoin USDT, has made a $150 million minority investment in Gold.com (GOLD). This move signals a deepening commitment to the gold market as investor interest in the precious metal rises amid global economic uncertainty.

Expanding Access to Gold

The investment, announced on Thursday, grants Tether a 12% stake in Gold.com, a platform providing access to both physical and tokenized gold. As part of this partnership, Tether will integrate its gold-backed token, XAUT, into Gold.com’s infrastructure.

Did You Know? Gold.com’s publicly-traded shares increased by 6% following the announcement.

The companies are also exploring options to allow purchases of physical gold using both USDT and USAT, Tether’s recently launched U.S.-regulated stablecoin. This expansion aims to broaden access to gold investments for a wider range of users.

A Growing Market

Tether’s investment coincides with a significant rally in gold prices, recently exceeding $5,000 per ounce. The market for blockchain-based gold tokens has also experienced substantial growth, increasing from $1.3 billion to over $5.5 billion. Currently, XAUT represents over 60% of the tokenized gold market and is backed one-to-one by physical gold held in Swiss vaults.

Expert Insight: Tether’s investment suggests a strategic view of gold not as a speculative trade, but as a long-term hedge against instability in the global financial system. This move reflects a broader trend of integrating traditional assets with blockchain technology.

Paolo Ardoino, CEO of Tether, stated that gold has historically served as a means of preserving value, particularly during times of monetary stress and geopolitical uncertainty. He further emphasized that this investment is a “hedge” and a “long-term allocation” to protect Tether’s user base.

This investment in Gold.com is part of a series of strategic moves by Tether. Earlier on Thursday, the company also announced a $100 million investment in Anchorage Digital, a U.S. Federally regulated crypto bank and a key partner in the rollout of USAT.

Frequently Asked Questions

What is XAUT?

XAUT is Tether’s gold-backed token, currently making up over 60% of the tokenized gold market, and is backed one-to-one by physical gold held in Swiss vaults.

What is USAT?

USAT is Tether’s recently launched U.S.-regulated stablecoin, and the companies will explore enabling purchases of physical gold using USAT.

How much of Gold.com does Tether now own?

Tether now owns a 12% stake in Gold.com following the $150 million investment.

As Tether continues to expand its offerings and partnerships, how might this integration of traditional assets and blockchain technology reshape the future of investment?