Whereas Bitcoin (BTC) is commonly described as digital gold, a tokenized commodity providing direct publicity to the bodily metallic is quietly gaining traction.
By the tip of the second quarter, Tether Gold (XAUt) — a tokenized asset issued by the stablecoin supplier behind USDt — was backed by 7.66 tons of gold, based on the corporate’s newest attestation report. The reserve helps greater than 259,000 XAUt tokens in circulation, giving the asset a complete market worth of over $800 million.
The rise of Tether Gold displays a broader surge in demand for bodily bullion, which has hit a number of document highs this yr amid renewed inflation considerations and market unease pushed by the White Home’s tariff agenda.
Whereas many buyers nonetheless favor holding bodily gold, many establishments are turning to its digital counterpart. Simply this week, Bitcoin (BTC) treasury firm Twenty One Capital introduced that its BTC holdings have exceeded preliminary projections.
This week’s Crypto Biz explores the momentum behind Tether Gold, Twenty One Capital’s rising Bitcoin reserves, the growth of tokenized finance on Avalanche and a latest Securities and Alternate (SEC) approval that might streamline the launch of crypto funding merchandise.
Tether Gold sees continued progress as bullion hits document highs
Tether Gold has increased its physical bullion reserves as demand for its XAUt token continued to develop within the first half of the yr, based on the newest attestation report from BDO Italia. XAUt, which intently tracks the market worth of gold, has surged 40% over the previous yr.
Launched in January 2020, XAUt has gained vital traction not too long ago as buyers search safety towards foreign money debasement, persistent inflation and potential financial fallout from US President Donald Trump’s tariff agenda.
The urge for food for gold extends past retail and institutional buyers. In keeping with the World Gold Council, central banks added greater than 1,000 metric tons of gold in 2024, marking the third consecutive yr they’ve surpassed that threshold.
Twenty One Capital’s Bitcoin holdings attain 43,500 BTC
Bitcoin treasury agency Twenty One Capital has expanded its BTC holdings, underscoring the continuing institutional race to build up what many view because the world’s hardest asset.
In keeping with Bloomberg, the Cantor Fitzgerald–backed company acquired a further 5,800 BTC from stablecoin issuer Tether, bringing its whole holdings to roughly 43,500 BTC — about 1,500 BTC greater than initially projected at launch.
At present market costs, Twenty One Capital’s Bitcoin reserves are valued at over $5.1 billion. Since its April launch, the corporate has already turn out to be one of many high three company Bitcoin holders, trailing solely Technique and MARA Holdings, based on business information.
Avalanche will get RWA increase
Avalanche has secured a $250 million real-world asset (RWA) infusion after institutional-grade credit score protocol Grove introduced it is going to allocate capital to 2 Janus Henderson funding merchandise focusing on US Treasurys and collateralized mortgage obligations (CLOs), in partnership with Centrifuge.
The capital will likely be deployed into the Janus Henderson Anemoy Treasury Fund, an actively managed onchain fund offering publicity to short-term US T-bills, and the Janus Henderson Anemoy AAA CLO Fund, which presents tokenized entry to the CLO market.
Grove, backed by Steakhouse Labs and incubated by Sky (previously MakerDAO), goals to convey institutional credit score methods onchain.
The transfer underscores the rising momentum of RWAs on the Avalanche blockchain, at a time when Ethereum’s dominance in the RWA sector is starting to erode.
SEC greenlights in-kind redemptions for crypto ETFs
US cryptocurrency exchange-traded fund (ETF) issuers acquired a major regulatory win this week because the SEC approved in-kind creations and redemptions — a change that enables fund managers to alternate ETF shares immediately for the underlying crypto property, fairly than money.
“It’s a brand new day on the SEC, and a key precedence of my chairmanship is creating a fit-for-purpose regulatory framework for crypto asset markets,” stated SEC Chairman Paul Atkins, who described the rule change as a transfer that can make crypto ETFs “more cost effective and extra environment friendly.”
The up to date redemption guidelines apply to each Bitcoin and Ether (ETH) spot ETFs, which had been accredited in 2024.
Whereas Bitcoin ETFs have loved sturdy inflows since launch, Ethereum ETFs at the moment are gaining momentum. BlackRock’s iShares Ethereum ETF not too long ago surpassed $10 billion in property, reaching the milestone on the third-fastest tempo in US ETF historical past.
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