Gold-Backed Stablecoins Threatens USD Dominance

The Bitcoin maximalist Max Keiser believes gold-backed tokens offer stable and inflation-protected tokens compared to the USD

Gold-backed stablecoins are emerging as substitutes for US dollar-pegged stablecoins in global markets. The Bitcoin maximalist Max Keiser believes gold-backed tokens offer stable and inflation-protected tokens compared to the USD.

Stablecoins that use gold as collateral are regarded as less volatile and more reliable than their counterparts which are pegged to the US dollar.

Gold-Backed Stablecoins Threaten USD Dominance

Keiser explained that gold’s established history as a long-term store of value makes it more trusted than fiat currencies. He stated that nations that hold hostile relations with the United States such as Russia, China and Iran. These countries may prefer gold-backed stablecoins, which could threaten USD’s dominance in the international financial markets.

The potential introduction of gold-backed stablecoins threatens to disrupt the US legislative approach to expand USD dominance through digital assets. Keiser stated that China and Russia hold substantial gold reserves which could support a new gold-backed stablecoin. These countries could use these resources to create stablecoins that compete with USD-backed stablecoins.

US policymakers are focused on USD-backed stablecoins to protect the status of USD as the world’s reserve currency. Treasury Secretary Scott Bessent stated that the Trump administration has prioritized dollar-pegged stablecoins to maintain US financial dominance in the global economy. Additionally, the Federal Reserve endorses stablecoins to advance the global dominance of the U.S. dollar.

Inflation Hedge Inspires Gold-Pegged Stablecoins

Gold-backed stablecoins offer a hedge against inflation while USD stablecoins don’t adapt to inflation. The gold-backed token has low market volatility and preserves long-term purchasing power. However, USD stablecoins still face the risks associated with inflation and the decline of dollar value in the market.

Tether, a top stablecoin issuer, launched its gold-backed stablecoin,Alloy which is backed by its XAUT token. The new gold-backed stablecoin has achieved a 15.7% year-to-date increase. The market demand for inflation protection solutions by businesses and foundations has fueled the increased adoption of gold-backed stablecoins as attractive investment options.

Regulation of Stablecoins

The US government is keen on regulating USD-backed stablecoins amid concerns over digital asset regulation. The US lawmakers have introduced two legislative bills such as the Stable Act of 2025 and GENIUS bill to establish a regulatory framework for stablecoins. The government is pursuing these initiatives to maintain control over digital assets operations.

Tether is in discussions with US lawmakers to develop federal stablecoin regulations. The company is collaborating with key members of Congress to influence regulatory policies. Additionally, Tether has partnered with a Big Four accounting firm to audit Tether’s reserves and confirm that each token is fully backed by available assets.

The popularity of gold-backed stablecoins continues to rise despite increased regulatory scrutiny on USD-backed stablecoins. The gold-backed stablecoins present a reliable alternative to dollar-backed tokens since gold remains a long-term store of value. Gold-backed stablecoins could shape the digital asset industry.