Tether (USDT) invested 150 million dollars in Gold.com, taking a minority stake as it seeks to expand the distribution of tokenized and physical gold via both digital and traditional channels, according to a press release issued Thursday.
The agreement gives Tether about 12% equity in Gold.com and establishes a longer-term partnership aimed at connecting Tether's gold-backed token, XAU₮, with a mainstream precious metals platform.
Structure of the agreement and integration plans
Tether stated that the partnership will integrate XAU₮ into the Gold.com platform.
Companies also stated that they are exploring options that would allow customers to buy physical gold using digital currencies such as USD₮ and USA₮, the stablecoin recently launched by Tether, backed by the dollar and federally regulated.
Companies specified that any functionality of this type would depend on regulatory, technical, and commercial factors.
Tether's CEO, Paolo Ardoino, stated that the investment reflects a long-term vision of gold as a hedge rather than a short-term trade, asserting that tokenization can make gold easier to hold, transfer, and use without giving up physical collateral.
The demand for tokenized gold is increasing with the vigor of the market
Tether has placed the timing of this investment in the context of a resurgence in the gold markets, citing prices above $5,000 an ounce in recent days, in a climate of macroeconomic and geopolitical uncertainties.
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The company indicated that the market for gold-backed stablecoins has significantly grown over the past year, rising from about $1.3 billion to over $5.5 billion in capitalization.
Tether stated that XAU₮ represents more than 60% of this market.
Statements on reserves and regulatory context
Tether claims that XAU₮ is backed one-for-one by physical gold, with each token representing one fine troy ounce linked to a specific bar meeting the London Good Delivery standard.
The company added that the product is issued under Salvadoran law on the issuance of digital assets and backed by about 140 tons of gold held in secure vaults, referring to its latest independent attestation.
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