Why is Tether buying so much gold?

Tether is buying gold to diversify its corporate reserves and enhance balance-sheet resilience, viewing it as a strategic asset.

Are Tether's gold purchases linked to its XAUT token?

No, over 100 tonnes of Tether's gold holdings are funded by corporate profits and are not tied to its XAUT token issuance.

How is Tether's strategy impacting gold prices?

Tether's involvement is seen as reinforcing the demand floor for gold, reducing downside risk and contributing to price surges.

Home / Business and Economy / Tether Fuels Gold Surge: A New Reserve Strategy

Tether Fuels Gold Surge: A New Reserve Strategy

4 Jan

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Summary

Tether's gold purchases are funded by corporate profits, not its tokens.
Over 100 tonnes of gold are held by Tether independently of XAUT.
Corporations now view gold as a strategic reserve asset.

Tether Fuels Gold Surge: A New Reserve Strategy

Gold prices are being significantly influenced by the increasing involvement of non-state entities, with Tether identified as a key player. Market experts suggest this involvement strengthens the underlying demand for gold and mitigates potential price drops.

Tether's substantial gold acquisitions are not connected to its gold-backed token, XAUT. Instead, these purchases stem from the company's profits, reflecting a strategic effort to diversify reserves and bolster financial stability.

Crucially, over 100 tonnes of gold held by Tether exist independently of any token issuance. This highlights a burgeoning trend where corporations and tech-focused financial entities are increasingly treating gold as a vital strategic reserve asset, a strategy long adopted by central banks.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.