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Tether Invests $150 Million in Gold.com to Expand Digital Gold and Stablecoin Use
Tether, the company behind the largest stablecoin USDT, has now invested a $150 million stake in Gold.com to buy Gold. This investment gives Tether 12% ownership in Gold.com. Tether aimed to offer a tokenized gold that can be traded on the blockchain and is safer during the global economic uncertainty.
What this partnership means
Through this partnership, Tether will integrate its gold-backed token XAUT into Gold.com, and users may be able to buy real physical gold using USDT. Purchases may also support using USAT, which is the Tether’s new U.S.-regulated stablecoin. After the announcement of the Tether partnership, Gold.com shares increased by 6%.
Tokenized golds are the real gold turned into a digital token. Each XAUT token is backed 1:1 by real gold, and golds are stored in Swiss vaults safely, where users can trade or move gold digitally without handling it in physical bars. The tokenized gold market has grown rapidly from $1.3 billion to over $5.5 billion. Tether’s XAUT controls more than 60% of this market right now
Paolo Ardoino, Tether’s CEO, said that Gold is a long-term protection tool, and he explained that Gold has protected value for hundreds of years and it performs well during financial stress. According to Ardoino, Tether wants to protect both users and the company’s reserves, so gold helps to balance risks in an unstable global economy.
Along with this deal, Tether also invested in Anchorage Digital, which is a federally regulated U.S. crypto bank. This bank supports USAT, which shows that Tether is expanding into regulated U.S. markets and combining digital dollars, gold, and regulations
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