Tether and El Salvador Forge Deeper Gold Alliance—The ’Natural Bitcoin’ Connection Intensifies
Two titans of the crypto world double down on the original store of value.
Strategic Moves
Tether's expanding gold-backed reserves and El Salvador's pioneering national bitcoin strategy converge on a shared truth—gold remains the bedrock of monetary confidence. This isn't just diversification; it's a deliberate pivot toward assets that bypass traditional banking vulnerabilities.
Market Impact
The partnership signals a growing institutional appetite for real-world asset backing in digital finance. While bitcoin purists debate the 'natural' comparison, gold's historic resilience offers a compelling bridge between ancient value and modern technology.
Finance professionals might scoff at the metallurgical romance—until they remember their own institutions still hoard the shiny stuff in vaults. Some traditions die hard, even in revolution.
El Salvador’s first gold buy in 35 years
Tether’s gold push comes as Banco Central de Reserva, El Salvador's central bank, announced its first bullion purchase in 35 years, buying 13,999 troy ounces for $50 million, raising the country’s holdings to 58,105 ounces, worth an estimated $207 million.
The central bank characterized the purchase as a diversification play for its $4.7 billion in foreign reserves, according to a syndicated report from Agencia EFE.
El Salvador has already accumulated more than 6,200 bitcoin, now valued at over $706 million based on current prices, according to data from bitcoin Treasuries. Earlier this week, the country’s Bitcoin Office confirmed that it has moved its crypto holdings to new addresses, following security concerns.
These moves suggest that large sovereign Bitcoin holders, such as El Salvador, and major crypto industry names, including Tether, are beginning to frame gold as a complementary hedge, treating it less as a rival asset and more as a partner in diversification strategies.
A source working on Tether's regional expansion efforts declined to comment, citing internal policies, and instead directed Decrypt to Ardoino’s interview with Anthony Pompliano in August, where he argued that gold could be viewed as a counterweight to fiat, not a rival to Bitcoin.
In the interview, Ardoino suggested traders might choose to rotate into bullion at cycle peaks, given its 6,000-year history and scale as a reserve asset.
“There is time for everything, and I think that when [...] if the world will go to hell in the next 5 years, there’s good chances that part of the reset will happen in gold,” Ardoino said.
