Tether acquires 12% stake in Gold.com in $150M strategic investment

Tether Invests $150 Million in Gold.com, Acquires 12% Ownership

Tether, a prominent stablecoin issuer, has recently made a significant move by acquiring a 12% ownership position in Gold.com for $150 million. This strategic investment marks Tether’s further expansion into the tokenized gold ecosystem.

Long-Term Partnership to Integrate XAU₮

Through this investment, Tether has established a long-term partnership with Gold.com. The primary goal is to integrate XAU₮, Tether’s gold-backed digital asset, into Gold.com’s distribution channels. Additionally, the partnership aims to explore new avenues that connect physical gold with digital currencies.

Gold Market Performance

Gold prices have been volatile, reaching a record high above $5,500 per ounce in late January before experiencing a 15% retracement. Currently, gold is trading around $4,700 per ounce.

Growth of Gold-Backed Stablecoin Market

The gold-backed stablecoin market has seen significant growth, tripling over the past year to reach $5.5 billion. XAU₮, Tether’s gold-backed stablecoin, now holds over 60% market share with $2.4 billion in circulation, surpassing PAXG to become the category leader.

XAU₮: Backed by Physical Gold

XAU₮ is fully backed by allocated physical gold stored in secure vaults, with daily attestations and issuance under El Salvador’s Digital Asset Issuance Law. Each XAU₮ token represents one fine troy ounce linked to a London Good Delivery bar, with backing equivalent to approximately 140 tonnes of gold.

Tether’s CEO on Gold Investment

CEO Paolo Ardoino emphasized that Tether’s investment in gold is a long-term strategy focused on hedging and safeguarding against market instability. He highlighted XAU₮ as a blend of gold’s resilience and blockchain-based settlement efficiency.

Bridging Crypto and Traditional Finance

Tether’s partnership with Gold.com also signals its commitment to bridging the gap between crypto-native and traditional finance. The collaboration aims to offer access to gold in both retail and institutional settings.

Exploring Stablecoins for Gold Purchases

Tether and Gold.com are exploring the use of USD₮ and USA₮, Tether’s dollar-backed stablecoins, for facilitating gold purchases. This initiative further enhances the utility and accessibility of stablecoins in the gold market.