Gold surpasses $5,300, highlighting diverging Tether and Coinbase strategies

Gold set a new all-time high above $5,300 per ounce, widening the strategic divide between Tether and Coinbase — the companies behind two of the largest dollar-backed stablecoins.

Riding the surge in precious metals, Tether continued to increase the share of gold in its reserves. The company holds 520,089 troy ounces backing XAUT — about 16.2 metric tons — and an additional roughly 130 metric tons of physical gold within its broader reserves. At current prices, the combined value exceeds $22 billion. Tether’s leadership says the firm is now comparable to the central banks of Mexico, South Africa, and Sweden in terms of gold volume.

Tether CEO Paolo Ardoino said the company is effectively becoming “one of the world’s largest gold central banks.” The firm stresses that every XAUT token is backed by real bullion available for physical redemption.

Coinbase, by contrast, is leaning into derivatives rather than physical metal. As gold prices surged, the exchange reminded users of its lineup of gold, silver, copper, and platinum futures. Coinbase CEO Brian Armstrong said these instruments allow investors to navigate market cycles without dealing with physical delivery.

The message sparked debate among traders: some interpreted Coinbase’s promotion as a potential sign of a local market top, noting that similar announcements have historically coincided with short-term reversals.

Gold’s rally stands in contrast to bitcoin’s weakness. BTC remains below $90,000, lagging far behind gold’s 90% year-over-year surge. At the same time, Binance launched perpetual contracts on gold and silver, highlighting a growing overlap between the crypto and commodities markets.

The metal’s sharp rise also comes as the U.S. dollar index weakens — down 10.7% over the year — boosting gold’s appeal as a defensive asset.

With Tether and Coinbase diverging, a new industry debate is emerging: which is better — physical backing or access to liquid derivatives? In the coming weeks, the market will watch whether gold can maintain its momentum and how its performance continues to influence crypto assets.