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- Tether invests $200M in gold mining, refining, and royalties to complement crypto holdings.
- XAUT price surges above $3,559 as gold hits record highs and investors seek safe-haven assets.
- Analyst forecasts push gold toward $4,000–$5,000, highlighting market uncertainty and diverging Bitcoin correlation.
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Tether, the world’s largest stablecoin issuer, is broadening its portfolio by investing in the gold supply chain. With $8.7 billion in gold bars already stored in a Zurich vault, the company plans to channel crypto profits into gold mining, refining, trading, and royalty companies, according to the Financial Times report on September 5. CEO Paolo Ardoino described gold as “natural Bitcoin,” emphasizing that the precious metal complements digital assets rather than competes with them.
Strategic Investments in Gold Royalties
Tether has already made significant inroads into the gold sector. In June, Tether Investments SA acquired a $105 million minority stake in gold royalty company Elemental Altus. Just recently, on September 4, the firm added another $100 million as Elemental Altus merged with EMX to form Elemental Royalty Corp, a gold-focused entity. These strategic moves signal Tether’s long-term commitment to leveraging gold as a core part of its investment strategy.
Tether Gold (XAUT) Surges Amid Market Uncertainty
Tether’s gold-backed crypto token, XAUT, has seen notable gains even as the broader crypto market faces selling pressure. The token’s market capitalization surged to over $877 million, with its price climbing above $3,559—up more than 5% in just one week. This spike coincides with gold reaching an all-time high above $3,600. Analysts, including Goldman Sachs, predict further upside, with potential targets as high as $5,000, driven by macroeconomic uncertainty and rising Treasury yields.
Also Read: Tether Posts $5.7B Profit, Eyes U.S. Stablecoin Launch
Gold vs. Bitcoin: Shifting Investor Preferences
Interestingly, the correlation between Bitcoin and gold appears to be weakening. Amid market volatility and looming Federal Reserve rate cuts, many investors are turning to gold as a safe haven, boosting demand for XAUT. Matrixport also forecasts a possible gold price of $4,000, reinforcing the appeal of gold-backed crypto tokens during periods of financial uncertainty.
Tether’s expansion into the gold supply chain highlights a growing trend of crypto firms diversifying into traditional assets. By integrating gold mining, refining, and royalty investments alongside Bitcoin and stablecoins, Tether aims to solidify its position as a hybrid financial player bridging digital and physical assets.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
