The impact of stablecoins on gold
Jul 15, 2025 pm 10:12 PMThe impact of stablecoins on gold is two-sided, specifically manifested as: 1. Weakening the demand for safe-haven gold, because most of the underlying assets of stablecoins are US bonds, their expansion will help alleviate the credit risk of the US dollar and reduce the attractiveness of gold as a hedge tool; 2. If a trust crisis occurs in a stablecoin, it may push back funds to gold; 3. The development of stablecoins may shake the confidence of the US dollar and give birth to gold anchor coins, thereby increasing gold demand; 4. The current stablecoin market is small and subject to regulatory restrictions, and the overall impact is limited, making it difficult to shake the status of gold.
Stablecoin trading platform:
Ouyi OKX:
Binance Binance:
Huobi:
Gateio Sesame Opening:
- Weakening the demand for gold safe-haven: Most of the underlying assets of stablecoins are short-term US Treasury bonds, and their scale expansion requires increasing holdings of US bonds, which will help alleviate the financing pressure of the US government and repair the credit of the US dollar. When the US dollar's credit is strengthened, gold's attractiveness as a hedge against the US dollar's credit risk tool will weaken. In addition, in some emerging markets with high inflation, stablecoins have become the first choice for "on-chain cash" due to their low volatility. Some funds that may have flowed into gold will choose to flow into stablecoins, thus diverting the demand for gold and forming certain resistance to the rise of gold prices.
- The Stable Coin Trust Crisis Promotes Funds to Gold: Stable Coins pose a risk of centralized trust. For example, USDT once caused a trust crisis due to reserve transparency issues, and USDC also deaned its anchor in the 2023 Silicon Valley Banking Incident. If similar events happen again, market investors will lose confidence in stablecoins and then turn their funds to traditional safe-haven assets such as gold, driving gold prices to rise.
- Expanding gold demand: The development of stablecoins may further shake international markets' long-term confidence in the US dollar. Under the "de-dollarization" trend, investors will increase their demand for safe-haven assets such as gold in order to hedge currency risks. In addition, if a stablecoin anchored by gold is issued, the issuer needs to reserve the corresponding gold, which will passively increase gold demand, which will be conducive to the rise in gold prices in the long run.
- Limited impact is difficult to shake the status of gold: the widespread application of stablecoins is restricted by regulatory levels, major economies have different attitudes towards stablecoins, and there is also uncertainty about whether relevant bills can be implemented, which will limit its impact on gold to a certain extent. Moreover, the current total market value of the stablecoin market is relatively small compared to the total market value of gold, only about one percent of the total market value of gold. The status of gold as a global reserve asset is still difficult to shake, so the overall impact of stablecoins on gold prices is relatively limited.
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