Gold-backed stablecoins gain momentum amid USD competition

Gold-backed stablecoins are gaining attention as an alternative to USD-pegged tokens, driven by geopolitical tensions and inflation concerns.

Bitcoin (CRYPTO:BTC) advocate Max Keiser predicts these assets will outcompete dollar-based stablecoins globally, citing gold’s historical reliability and resistance to political risks.

Gold-backed stablecoins would be preferred above USD-pegged choices, according to Keiser, by nations like China, Iran, and Russia that are looking for alternatives to U.S. financial power.

“Russia, China, and Iran are not going to accept a US dollar stablecoin. I predict they will counter the USD stablecoin with a gold one,” he stated, noting their combined gold reserves exceed 50,000 tonnes.

Gold’s stability contrasts with fiat currencies, which face inflationary pressures and political volatility.

Tether’s gold-backed stablecoin, Alloy Tether (CRYPTO:AUSDT), launched in June 2024, has gained traction.

“XAUT is up 15.7% year-to-date, while the broad crypto market is in the red. Foundations and businesses should hedge their holdings with XAUT,” Gabor Gurbacs, former VanEck executive, highlighted its appeal.

Meanwhile, U.S. policymakers are prioritising dollar-pegged stablecoins to maintain the USD’s reserve currency status.

Treasury Secretary Scott Bessent emphasised this goal at the March 7 White House Crypto Summit, while lawmakers introduced bills like the Stable Act of 2025 to formalise tokenised fiat frameworks.

Gold’s role as a hedge against inflation and geopolitical instability makes it an attractive backing for stablecoins.

Unlike USD-pegged tokens, gold-backed assets avoid reliance on a single nation’s monetary policy, appealing to countries seeking financial sovereignty.

However, U.S. officials argue that dollar-pegged stablecoins will reinforce global trust in the USD, countering de-dollarisation trends.

The rise of gold-backed stablecoins challenges U.S. efforts to dominate digital asset markets.

While Tether’s XAUT and similar projects gain traction, regulatory clarity remains critical.

Keiser’s prediction hinges on geopolitical shifts, particularly among nations seeking alternatives to the USD.

The outcome could redefine global financial dynamics, balancing traditional reserve currencies with decentralised, commodity-backed assets.