Gold surges to more than $3,390 on April 21 as more investors flock to safe- haven assets amidst economic uncertainty. A boost in gold could signal a similar pattern in crypto, specifically Bitcoin. According to the latest data from Trading Economics,…

Gold hits new ATH at $3,390, is Bitcoin close behind?

Bitcoin started the week on a strong note, surging over 3% to nearly $88,000. 
According to former BitMEX CEO Arthur Hayes, this might be the last chance to 
buy BTC under $100,000. Bitcoin (BTC) surged over 3% to reach $87,705…

This might be the last chance to buy BTC at under $100K: analyst

## What are gold-backed stablecoins, and how do they work?
_Gold-backed stablecoins are digital currencies pegged to physical gold 
reserves and designed to maintain a stable value. The concept of gold-backed 
digital currencies dates back to the early days of cryptocurrency, with 
developers aiming to create a reliable store of value. _
Each gold-backed stablecoin represents a specific quantity of gold. For 
instance, one token might be linked to 1 troy ounce of gold. A troy ounce is a 
unit of weight used explicitly for weighing precious metals like gold, silver 
and platinum; it is equal to 31.1034768 grams.
A third party typically holds the gold reserves to ensure security and 
transparency. The issuing entity is responsible for maintaining an equivalent 
amount of physical gold for every token in circulation.
The token&#8217;s price remains closely aligned with the market value of gold. 
Buyers pay gold&#8217;s spot price for a token. Similarly, if the stablecoin fails, 
the tokenholders can redeem their tokens for the gold. Practically, the gold 
is liquidated for electronic fiat transfers.
Regulators classify gold-backed stablecoins as commodity-backed stablecoins or 
asset-referenced tokens (ARTs), depending on jurisdiction. Examples of gold- 
backed stablecoins include Tether Gold (XAUT), Paxos Gold (PAXG) and Alloy 
(aUSDT).
_**Did you know?** On April 1, 2025, Tether Gold (XAUT) traded at $3,165. Its 
market capitalization was about $780.3 million, with a daily trading volume of 
$11.03 million._
## Advantages of gold-backed stablecoins
_Gold-backed stablecoins combine the stability of gold with the flexibility of 
digital assets. Their blockchain-based nature offers benefits beyond 
traditional paper gold. _
Here are a few advantages of gold-backed stablecoins:
 * **Flexible alternative to physical gold:** Gold-backed stablecoins function as blockchain-based representations of gold, offering a more efficient and flexible alternative to holding physical bullion. 
 * **Instant global trading:** Unlike traditional gold ownership, these tokens can be stored in cryptocurrency wallets from which you can transfer instantly and trade globally with a nominal transactional fee. 
 * **Access to DeFi applications:** They also enable decentralized finance (DeFi) applications, expanding their usability beyond traditional gold investments. 
 * **Better security:** Physical gold is vulnerable to theft, loss and damage. Gold-backed stablecoins, stored on blockchain networks, can be more secure. 
 * **Programmability:** Gold-backed stablecoins are programmable because they exist on blockchain networks such as Ethereum. This allows them to interact with smart contracts and work with decentralized apps (DApps). 
 * **Divisibility:** Splitting physical gold or even paper gold is challenging. However, you can split a single token into several decimal places, which can be recorded on the blockchain. 
 * **Make gold more accessible:** Gold-backed tokens enable you to easily access gold. An ounce of gold may be expensive, but you can easily buy 0.001 of a token. 
 * **Interoperability:** When you release a token on a widely used network like Ethereum, it is instantly operable with DApps, DeFi platforms and wallets supported by the network.
Diversification of funds: Investing in gold-backed stablecoins enables you to 
diversify your funds. It is a unique type of asset that protects you against 
currency value drops.
## What are USD-backed stablecoins, and how do they work?
_USD-backed stablecoins are cryptocurrencies designed to maintain a stable 
value by being pegged to the US dollar. Each token is typically backed by an 
equivalent amount of US dollars or cash-equivalent assets held in reserve by a 
financial institution or trust._
For every USD-backed stablecoin issued, the issuing entity must maintain a 
corresponding reserve amount to guarantee its value. This ensures that holders 
can always redeem their tokens for an equivalent dollar amount. Examples of 
USD-backed stablecoins are Tether (USDt), USDC (USDC) and Binance USD (BUSD), 
all of which are used in trading, payments and DeFi.
You can buy and sell stablecoins through crypto exchanges like Binance or 
Coinbase. To purchase, create an account, complete verification, deposit fiat 
or crypto and choose a stablecoin such as USDt or USDC. To sell, go to the 
trading section, select your stablecoin, and exchange it for fiat or another 
crypto. Some wallets and peer-to-peer (P2P) exchanges also support stablecoin 
trading.
_**Did you know?** The EU&#8217;s Markets in Crypto-Assets Regulations (MiCA) have 
forced crypto exchanges to delist USDT and other non-compliant stablecoins, 
resulting in a growing market for Euro-backed stablecoins. USDC continues to 
be a prominent USD alternative in the region._
## Advantages of USD-backed stablecoins
_USD-backed stablecoins offer several advantages, making them a critical part 
of the crypto ecosystem. By combining the reliability of fiat currency with 
the efficiency of blockchain, USD-backed stablecoins play a vital role in 
digital finance. _
Here are a few advantages of USD-backed stablecoins:
 * **Steady value:** Unlike traditional cryptocurrencies, which experience high volatility, stablecoins maintain a steady value, making them an ideal unit for payments, particularly in exchange for goods and services. 
 * **Liquidity and accessibility:** USD-backed stablecoins are widely accepted across crypto exchanges, payment platforms and DeFi applications. This allows traders to move funds quickly between assets without converting crypto back to fiat currency, reducing transaction costs and delays. 
 * **Transparency:** Issuers generally provide regular audits and reports on their reserves, which enables users to verify that actual USD holdings back each token. This transparency builds trust among users, issuers and regulators. 
 * **Fast, low-cost international payments:** Operating on blockchain networks, USD-backed blockchain networks facilitate fast, low-cost international payments without relying on traditional banking systems. This makes them a preferred option for remittances and cross-border trade. 
 * **Safe haven during market downturns:** USD-backed stablecoins offer stability during periods of market volatility. Investors and traders often convert volatile crypto holdings into stablecoins to protect their value without exiting the crypto market entirely.
Still, please note that stablecoins may depeg occasionally because of several 
macro and microeconomic factors.
Macro factors include changes in economic conditions, such as inflation or an 
increase in interest rates. Micro variables involve differences in market 
conditions, such as changes in the underlying collateral and problems with 
liquidity.
When Silicon Valley Bank failed in March of 2023, the USDC stablecoin deviated 
from its peg because $3.3 billion of its reserves were held there.
_**Did you know?** Stablecoins are of four types: fiat-collateralized, crypto- 
collateralized, algorithmic and commodity-collateralized. Algorithmic 
stablecoins have gradually gone out of favor._
## Key differences between gold-backed and USD-backed stablecoins
_Gold-backed and USD-backed tokens are stablecoins, yet they differ in several 
ways. This comparison explores the fundamental differences, focusing on their 
backing assets, price stability,liquidity, adoption and primary use cases:_
### Backing asset: Physical gold vs fiat reserves
Gold-backed and USD-backed stablecoins differ primarily regarding the 
collateral that supports their value. Gold-backed stablecoins are tied to 
physical gold, usually at a fixed ratio, while some USD-backed stablecoins are 
backed by a reserve of US dollars, short-dated and cash deposits.
### Price stability: Long-term vs short-term
The value of gold-backed stablecoins fluctuates depending on the market price 
of gold, which can experience short-term volatility but tends to appreciate 
over the long run. USD-backed stablecoins maintain a 1:1 peg to the dollar, 
ensuring more predictable short-term stability. Their value remains steady 
unless external factors, such as regulatory changes or mismanagement of 
reserves, impact the peg.
### Liquidity and adoption: Use of USD-backed in DeFi applications
USD-backed stablecoins are more liquid and widely accepted in the crypto 
ecosystem, including exchanges, payment systems and DeFi applications. They 
are frequently used for trading and lending. Moreover, many countries in Latin 
America, such as Bolivia, have adopted USDC for payments. Gold-backed 
stablecoins, while useful for preserving value, are less commonly integrated 
into DeFi protocols due to low liquidity concerns. 
### Use cases: Value storage
Gold-backed stablecoins serve as a hedge against inflation, appealing to 
investors seeking growth. USD-backed stablecoins are preferred by investors 
seeking stability and value storage. USD-backed stablecoins are used for 
everyday transactions, trading and financial services, thanks to instant 
liquidity and ease of use.
### Regulatory considerations: Compliance
Gold-backed stablecoins and fiat-backed stablecoins differ in regulation due 
to their underlying assets. For instance, specific regulations such as the 
Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS 
Act) and the Stablecoin Transparency and Accountability for a Better Ledger 
Economy (STABLE) Act have emerged in the US for USD-backed stablecoins. 
However, no specific regulations exist for gold-backed stablecoins as of March 
31, 2025, though they are expected to adhere to the usual banking and 
financial regulations.
## Can gold-backed stablecoins surpass USD-backed coins in adoption?
_Two factors favoring gold-backed stablecoins are their inflation-resistant 
properties and long-term stability. As Bitcoin advocate Max Keiser points out, 
goldenjoys greater global trust than the US dollar, particularly among nations 
with strained relations with the US. _
But is this enough for gold-backed stablecoins to get ahead of its more 
celebrated competitor?
USD-backed stablecoins, often under scrutiny in the days of the Biden 
administration, are now enjoying the support of the US government headed by 
President Donald Trump. The current dispensation views USD-backed stablecoins 
as a potent tool to maintain the status of the US dollar as the world&#8217;s 
reserve currency. While the Trump administration has been crypto-friendly 
since it took over, its support of the GENIUS Act and the STABLE Act, which 
await Congressional approval, is further testimony of this approach.
Treasury Secretary Scott Bessent has emphasized stablecoins as a strategic 
tool for sustaining the dollar&#8217;s reserve currency status. Federal Reserve 
Governor Christopher Waller has echoed this sentiment, supporting stablecoins 
as a means to uphold US dollar hegemony.
Still, countries including Russia, China and Iran, arch-rivals of the US, 
might prefer gold-backed stablecoins over USD-backed stablecoins because the 
bullion-powered coins may help them limit the influence of the US dollar. 
According to Keiser, China and Russia collectively hold around 50,000 tons of 
gold, more than officially reported. If true, this gold could be used to roll 
out gold-backed stablecoins.
If gold-backed stablecoins gain wider adoption, they could challenge the US 
government&#8217;s efforts to maintain dollar dominance through stablecoins. To that 
end, stablecoin issuer Tether introduced Alloy (aUSDT) in June 2024, a gold- 
backed digital asset tied to Tether Gold (XAUT), a token representing claims 
on physical gold.
Gold-backed stablecoins resemble the gold-backed US dollar before 1971. That 
was the year when President Richard Nixon abolished the convertibility of the 
US dollar to gold. XAUT has enjoyed a 15.7% price increase year-to-date, 
suggesting the growth potential of the bullion-backed stablecoins.
While gold-backed stablecoins present a compelling alternative, the battle for 
dominance between gold and USD-pegged stablecoins remains ongoing, influenced 
by geopolitical factors, financial policies, and market demand.

Gold-backed vs USD-backed stablecoins: Key differences

The alliance could significantly boost decentralized AI innovation, fostering 
a more inclusive and scalable ecosystem within the web3 space.
The post Aethir launches “AI Unbundled” alliance to accelerate decentralized 
AI development in web3 appeared first on Crypto Briefing.

Aethir launches “AI Unbundled” alliance to accelerate decentralized AI development in web3

The largest corporate Bitcoin holder in the world, Strategy, has purchased 
6,556 BTC for $555.8 million after the cryptocurrency broke through its 
monthly high of $87,400. According to a regulatory filing addressed to the 
U.S. Securities and Exchange Commission on…

Strategy buys 6,556 Bitcoin after BTC reaches monthly high

Are “please” and “thank you” just good manners, or are they changing how 
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