Tether Holdings SA is securing approximately 140 tons of gold in Swiss vaults to back its XAUT token, highlighting a strategic shift from Bitcoin storage to precious metals.
This move could influence goldโs role in digital finance and affect market perceptions as cryptocurrencies grapple with price volatility and regulatory scrutiny.
Tether Holdings SA has shifted its reserve strategy, securing approximately 140 tons of gold in a Swiss Cold War-era bunker, setting a precedent for future holdings. This enhances Tether Goldโs (XAUT) backing, with gold exceeding $23 billion in value.
Paolo Ardoino, CEO of Tether Holdings SA, emphasized the importance of gold against the backdrop of fiat concerns, actively acquiring 1-2 tons weekly. This move aligns with Tetherโs ambition to develop a premier gold trading platform.
Goldโs Stability Overshadows Bitcoinโs Volatility
Market analysts are closely observing Tetherโs expansion into gold as it shapes trends in gold-backed stablecoins. Predictions of continued gold strength emerge amid Bitcoinโs volatility, impacting cryptocurrency markets significantly.
Goldโs performance has been impressive, dwarfing Bitcoinโs gains over the recent years. Financial experts argue the move could bolster Tetherโs influence through XAUT, amidst ongoing debates over regulatory implications. Russell Thompson, CIO, Hilbert Group, mentioned, โI do not think that low 70s is out of the question in Bitcoin โ not today specifically, going to depend a lot on what happens with Iran and general overall sentiment.โ
Linking Current Moves to Historical Bunker Storage
The move revives practices like Xapoโs usage of Swiss bunkers for Bitcoin storage. Tetherโs approach mirrors and expands upon past methods, signaling potential market shifts with gold continuing to gain favor.
Experts from Kanalcoin suggest Bitcoinโs valuation could dip further if gold continues its ascent. They reference goldโs historic performance to underline its growing appeal, challenging Bitcoinโs status as a stable asset.
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