Gold Backs Bitcoin's Gamble as Tether Mines Stability

Tether CEO Paolo Ardoino has suggested that Bitcoin may be increasingly regarded as a hedge against traditional market volatility, particularly as the stablecoin issuer adjusts its asset allocations. The firm, which recently expanded its involvement in the gold sector, has acquired a stake in a Toronto-listed gold royalty company, Elemental Altus Royalties Corp., and is exploring additional investments across the gold mining and refining industry. Ardoino has long championed gold as a more secure and reliable store of value than fiat currencies, a sentiment now reflected in Tether’s broader strategic reallocation of its reserves.

Tether’s gold-backed stablecoin, XAUt, has been central to its diversification strategy. The company currently holds approximately $8.7 billion in gold, stored in vaults in Zurich. These reserves are part of an ongoing effort to strengthen the stablecoin’s collateral base and offer investors access to tokenized bullion. The move aligns with broader market trends, as gold prices have surged to record highs in 2025, with global central banks—including those in China, India, and Russia—increasing their gold holdings at an unprecedented pace.

El Salvador has followed a similar dual-asset strategy, recently purchasing $50 million worth of gold to bolster its international reserves. The purchase adds to the country’s existing holdings of 58,105 troy ounces of gold and 6,290 Bitcoin in its treasury. This approach reflects a growing recognition of the benefits of hedging against both fiat currency risks and digital asset volatility. President Nayib Bukele has emphasized the importance of diversification, with statements suggesting plans to expand domestic gold mining operations.

The combination of Bitcoin and gold in El Salvador’s reserves represents a hybrid model that balances the potential upside of digital assets with the stability of physical commodities. While Bitcoin has declined by approximately 6% year-to-date, gold has appreciated by 16% in the same period. This divergence underscores the different roles each asset plays in a diversified portfolio. Analysts have described El Salvador’s approach as a “bridge strategy,” aimed at maintaining alignment with traditional financial stakeholders while retaining exposure to high-growth digital assets.

Tether’s strategic shift toward gold-backed reserves and its exploration of mining investments suggest a broader industry trend of integrating traditional and digital assets. The company’s increasing presence in the gold sector, including stake acquisitions and ongoing discussions with mining firms, indicates a commitment to long-term stability. This trend is mirrored in El Salvador’s recent moves, highlighting the potential for complementary asset classes to enhance resilience in national and corporate treasuries.

title1 [url1]

title2 [url2]

title3 [url3]