Tether invests $150 million to acquire Gold.com! Tokenized gold market surges to $5.5 billion

Tether invests $150 million to acquire a 12% stake in Gold.com, integrating gold-backed tokens XAUT into the platform. Driven by gold prices surpassing $5,000 per ounce, the tokenized gold market has surged from $1.3 billion to $5.5 billion, with XAUT accounting for over 60% of the market share.

Tether’s $150 Million Acquisition of a 12% Stake in Gold.com

Tether, the issuer of the world’s most popular stablecoin USDT, has invested $150 million to acquire a minority stake in Gold.com, further expanding its presence in the gold market. The investment was announced in a blog post on Thursday, stating that Tether will hold a 12% stake in Gold.com. Gold.com is a platform offering physical gold and tokenized gold trading.

As part of the partnership, Tether will integrate its gold-backed token XAUT into Gold.com’s infrastructure. Launched in 2019, XAUT is a tokenized gold product where each token represents 1 ounce of physical gold stored in a Swiss vault. This 1:1 peg allows XAUT holders to benefit from rising gold prices while avoiding the hassle of storing and transporting physical gold.

The companies will also explore using Tether’s US dollar stablecoin USDT and the recently launched USAT, a US-regulated stablecoin, to purchase physical gold. This integration will create a closed-loop system: users can buy physical gold with USDT, tokenize it into XAUT, and freely trade or transfer on the blockchain. This seamless experience is unavailable in traditional gold markets.

Gold.com’s publicly traded shares rose 6% after Thursday’s close, indicating positive market reaction to the partnership. For Gold.com, Tether’s investment not only provides capital but also access to a large user base and global distribution network. USDT has millions of users worldwide, who can now access gold investments through Gold.com.

Strategically, this acquisition is part of Tether’s diversification efforts. While Tether’s core business has long been the US dollar stablecoin USDT, increasing competition and regulatory pressures in the stablecoin market have prompted Tether to seek new growth avenues. Tokenized gold is a natural extension, combining Tether’s strengths in tokenization and global distribution with the enduring demand for gold as a hedge asset.

Tokenized Gold Market Explodes from $1.3 Billion to $5.5 Billion

Tether’s investment coincides with a significant rise in gold prices, which broke the $5,000 per ounce level last week. This historic high reflects a surge in global risk aversion, driven by geopolitical tensions, inflation concerns, and monetary policy uncertainties, prompting investors to flock to gold.

Meanwhile, the blockchain-based gold token market has experienced explosive growth, soaring from $1.3 billion to over $5.5 billion. This 4.2-fold increase far outpaces traditional gold market growth. The advantages of tokenized gold include divisibility (buying fractional shares), liquidity (trading 24/7), and transferability (cross-border transfers without physical movement).

Tether’s XAUT currently accounts for over 60% of the tokenized gold market and is pegged 1:1 to physical gold stored in Swiss vaults. This dominant position gives Tether similar market power in tokenized gold as it has in the stablecoin sector with USDT. Acquiring a stake in Gold.com will further solidify this leadership.

Tokenized Gold Market Growth Data

Market Size: from $1.3 billion to $5.5 billion

Growth: approximately 4.2 times

XAUT Market Share: over 60%

Gold Price: surpassing $5,000/oz all-time high

Driving Factors: risk aversion, geopolitical tensions, blockchain advantages

Tether CEO Paolo Ardoino stated: “For centuries, gold has played a central role in wealth preservation, especially during times of monetary stress and geopolitical uncertainty.” He added, “For Tether, holding gold is not a trading strategy but a hedge and long-term asset allocation aimed at protecting our user base and ourselves from an increasingly turbulent world.”

This statement reveals Tether’s deep strategic logic. As the issuer of over $120 billion USDT, Tether holds substantial reserves, mainly US Treasuries and short-term commercial paper, but also significant gold holdings. By promoting XAUT, Tether effectively productizes its reserve allocation strategy, allowing users to enjoy the benefits of gold hedging.

Tether’s Dual Strategy with Investment in Anchorage

Earlier Thursday, Tether also announced an investment in Anchorage Digital, a US-regulated crypto bank and a key partner in USAT promotion. The simultaneous announcement of two major investments demonstrates Tether’s accelerating strategic deployment.

Anchorage focuses on US regulatory compliance and stablecoin infrastructure, while the Gold.com investment centers on gold tokenization and hedging. Although these lines seem different, they form a comprehensive strategic picture: Tether is building a dual-track ecosystem covering dollar stablecoins (USDT/USAT) and gold stablecoins (XAUT), with both regulated and offshore market presence.

This dual approach enables Tether to adapt to different market conditions. During stable periods, users prefer holding dollar stablecoins for DeFi and trading; during turbulent times, they may turn to gold stablecoins for hedging. Offering both options allows Tether to capture demand across market cycles.

From a competitive perspective, this strategy counters rivals like USDC and PYUSD, which mainly focus on dollar stablecoins. By launching a gold token, Tether opens a new market segment they have yet to enter. This differentiation helps Tether maintain its overall market leadership, even as its share of the dollar stablecoin market faces pressure.

For users, Tether’s product matrix provides comprehensive asset allocation options. Holding USDT offers liquidity and trading convenience; holding XAUT provides hedging and long-term preservation; USAT meets US regulatory requirements. This all-in-one service is a core competitive advantage.

Hedging Demand Fuels New Growth Path for Tokenized Gold

The current macro environment provides fertile ground for tokenized gold growth. Ardoino emphasizes that “monetary stress and geopolitical uncertainty” are very real today. US government shutdown risks, escalating Middle East conflicts, and global trade frictions all drive risk aversion.

While traditional gold markets are large, they have many inconveniences. Physical gold requires secure storage, high transportation costs, and verification equipment, making small investors difficult to involve. Tokenized gold solves these issues: holding on blockchain is equivalent to holding physical gold in a vault, tradable 24/7, fractionalizable, and transferable across borders in minutes.

Although the $5.5 billion market is still small compared to the $120 billion USDT, its growth rate is astonishing. Driven by rising gold prices and mature blockchain technology, tokenized gold could become the next hundred-billion-dollar crypto sector. Tether’s acquisition of Gold.com and integration of XAUT are preparing for this market’s explosive growth.

From Tether’s overall strategic perspective, gold investment is not just business expansion but also risk hedging. As a company issuing over $120 billion stablecoins, Tether faces significant reserve management pressures. Allocating part of its reserves to gold can hedge against dollar asset risks and provide additional stability during turbulent times.