- Tether invested US$150 million in Gold.com to combine its XAUT gold-backed token and allow bodily gold purchases utilizing USDT and USAT stablecoins.
- The deal follows gold hitting document highs above US$5,000 per ounce, contrasting with Bitcoin’s 50% decline from its peak.
- Market efficiency highlights Bitcoin as a long-term hedge towards financial debasement slightly than a short-term protected haven towards speedy volatility.
Tether is placing more cash into gold, shopping for a US$150 million (AU$230 million) stake in Gold.com, which sells entry to gold in two methods: conventional bodily gold, and tokenised gold, a digital token on a blockchain that represents a declare on actual gold held in storage.
As a part of the deal, Tether will plug its personal gold token, XAUT, into Gold.com’s platform. XAUT is designed to trace gold as a result of every token is backed 1:1 by bodily gold saved in Swiss vaults.
The partnership additionally explores a sensible cost angle by letting individuals purchase bodily gold utilizing Tether’s stablecoins, each USDT and USAT (the new US-regulated stablecoin). After the announcement, Gold.com’s shares rose 6% in after-hours buying and selling.
The timing issues as a result of gold has been working onerous, topping US$5,000 (AU$7,650) per ounce final week, and that tokenised gold as a class has grown shortly, from about US$1.3 billion (AU$1.99 billion) to over US$5.5 billion (AU$8.42 billion).
In the meantime, Bitcoin (BTC) is down over 50% from its all-time excessive.
Associated: Crypto Winter? Tapping Into Crypto Weighs Gold Signals, US$40K Risk, and 2026 Turning Point
Gold Over Bitcoin?
A lot for the entire narrative of Bitcoin being a protected haven. But it surely doesn’t defeat the thought solely, simply exposes a typical misunderstanding.
Bitcoin is commonly described as a long-term hedge, not a short-term protected haven. A protected haven is predicted to carry worth throughout stress instantly (like money, short-dated Treasuries, or generally gold).
Bitcoin has by no means reliably performed that. What BTC has proven, over longer cycles, is resilience towards financial debasement, not towards volatility. Its “hedge” narrative is about fastened provide over a few years, not safety throughout drawdowns, recessions, or deleveraging phases.
When world liquidity tightens, Bitcoin normally drops first and recovers later.
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