What happened?
Tether, the company behind the largest stablecoin USDT, is eyeing a more significant investment in gold. It aims to expand its gold exposure strategy across mining, refining, and trading. So far, Tether has invested over $200 million in the gold royalty firm Elemental Altus and holds $8.7 billion in gold reserves stored in Zurich.
Who does this affect?
This move impacts a wide range of stakeholders. The expansion of Tether’s gold exposure strategy could affect gold-mining companies and other businesses aligned with the gold supply chain. Additionally, cryptocurrency investors and enthusiasts who believe in the strength of stablecoins backed by physical assets might also take interest in this development.
Why does this matter?
This development matters because it signifies an emerging trend of blending blockchain-based finance with hard-asset backing. Tether’s approach in merging digital assets with traditional commodities, like gold, could potentially transform the cryptocurrency market landscape. It also highlights the continued dominance and growth of stablecoins in the global markets.