Tether Invests $150M in Gold.com to develop gold tokenization

The funding arm of stablecoin issuer Tether has acquired a $150 million stake within the valuable metals platform Gold.com to develop entry to tokenized gold.

Tether stated on Thursday that it acquired an roughly 12% stake within the firm, which can combine Tether Gold (XAUt), its gold-backed cryptocurrency, into Gold.com’s platform.

Gold.com is a publicly listed on-line market that sells gold and different valuable metals, resembling silver and platinum, to a number of markets, together with the US.

“Gold has performed a central function in preserving worth for hundreds of years, notably in periods of financial stress and geopolitical uncertainty,” stated Tether CEO Paolo Ardoino. “Gold publicity just isn’t a commerce for Tether; it’s a hedge and a long-term allocation to guard our consumer base and ourselves in a world that’s turning into more and more unstable.”

He added the corporate’s funding in Gold.com “displays a long-term perception that gold ought to be as accessible, transferable, and usable as fashionable digital cash, with out compromising on bodily backing or possession.”

Tether explores stablecoin funds for gold

Tether and Gold.com are additionally exploring choices to allow clients to buy bodily gold with Tether’s flagship stablecoin USDt (USDT) and its new stablecoin particularly for the US market, USAt (USAT), which it launched with crypto-native financial institution Anchorage Digital on Jan. 27.

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Tether’s expanded gold choices come as gold rallied greater than 80% over the previous 12 months to $5,600 on Jan. 29, earlier than cooling off to $4,800 on the time of writing.