Tether: Institutional Investors' Gold Purchases Hit Record High

ChainCatcher news, Tether stated that gold has long been regarded as the preferred safe-haven asset, with investors often flocking to this precious metal during periods of market turmoil. This is because gold has a long-standing reputation as a hedge against inflation, currency devaluation, and economic uncertainty. Therefore, during times of geopolitical uncertainty, the demand for gold tends to increase as investors seek to diversify their portfolios and reduce volatility.

As global geopolitical tensions escalate, it is not surprising that investors rely on gold to protect themselves from further turmoil. Even more telling is that institutional investors have been purchasing gold at record levels. In recent years, central banks around the world have shown increasing interest in gold, with purchases in 2022 reaching the highest level on record. In fact, central banks' net purchases of gold have remained positive for 13 consecutive years. Tether believes that the appeal of gold to major powers will only increase in the coming years, as countries continue to see the value of holding physical assets that can serve as a reliable long-term store of value.

It is reported that Tether Gold (XAUT) is a digital token launched by Tether, backed by physical gold. (source link)