Tether, gold, and the invisible vault: the secret $8bn strategy - Crypto review

Commodity

Cryptocurrency

Summary:

Tether secretly stores $8B in gold in a Swiss vault, diversifying beyond USDT amid rising global tensions. Meanwhile, crypto ETFs, corporate crypto treasuries, and AI investments highlight crypto's expanding reach.

Block 1: Main news

Truth Social wants to launch a "Crypto Blue Chip" ETF combining Bitcoin, Ethereum and Solana

After already applying for two crypto ETFs, Truth Social, the platform linked to Donald Trump, has filed a new application with the SEC for a "Crypto Blue Chip" ETF. It would be composed of 70% Bitcoin (BTC), 15% Ether (ETH), 8% Solana (SOL), 5% Cronos (CRO) and 2% XRP (XRP). The fund is backed by Yorkville America Digital, with Crypto.com as a strategic partner, and is seeking listing on the NYSE Arca. This initiative comes at a time when the regulatory environment is more favorable under the Trump administration, with many managers (Grayscale, Bitwise, Franklin Templeton, etc.) also filing applications for expanded crypto ETFs.

GameSquare jumps 120% on the stockmarket after announcing cash holdings in ether

Video game company GameSquare saw its stock soar 120% on the Nasdaq after announcing the creation of an ether (ETH) cash reserve. The company plans to allocate up to $100m to ether over time, while maintaining its working capital. This move is part of a broader trend, with many listed companies investing in crypto. While some warn of the risks of a passing fad, the regulatory environment and the strength of BTC above $100,000 are fueling enthusiasm.

France: Sequans raises $384m to build a bitcoin treasury

French IoT chip manufacturer Sequans has just completed a $384 million fundraising round to build up a bitcoin reserve. Listed in New York and Paris, the company has combined shares, convertible bonds and warrants to finance this strategy. The purchase of BTC will be handled by Swan Bitcoin. This is a first for a French manufacturer, which is following in the footsteps of Strategy and Tesla. CEO Georges Karam cites a desire for financial resilience in an uncertain global context.

Bitcoin: BlackRock's IBIT ETF outperforms its S&P 500 fund in terms of profitability

Since its launch in early 2024, BlackRock's Spot Bitcoin ETF (IBIT) has been a resounding success. With nearly $70 billion in assets, it has become more profitable for BlackRock than its own S&P 500 fund (IVV), which is nine times larger. IBIT generates $187.2 million in annual fees thanks to massive demand from investors seeking exposure to Bitcoin through regulated products. It now ranks among the top 20 most traded ETFs in the United States, ahead of historic giants in passive management.

Tether, gold, and the invisible vault: the secret $8bn strategy - Crypto review_1

Block 2: Cryptic Analysis of the week

Somewhere in Switzerland. The news went almost unnoticed amid the flood of crypto announcements. And yet it marks a turning point in the strategy of the giant Tether: the issuer of the USDT now holds nearly 80 tons of physical gold — the equivalent of $8 billion — in its own vault in Switzerland. Yes, a private vault, outside the traditional banking system, kept secret, invisible on maps... but very real.

An extraordinary diversification strategy

Tether Holdings SA, a company registered in El Salvador, manages the world's largest stablecoin: the USDT, with $159 billion in circulation and 60% of the stablecoin market. Its business model? Receive dollars in exchange for USDT, then invest this collateral in profitable and liquid assets such as US Treasury bills. But recently, precious metals have come to account for 5% of its reserves, according to a report published in March.

A minority share, certainly, but one that already makes Tether one of the world's largest holders of gold outside of governments and central banks — on par with giants such as UBS.

Why create your own vault?

Paolo Ardoino, CEO of Tether, explains in an interview: "We have our own vault. I think it's the most secure in the world." No date, no address, no partners: everything is kept confidential. This strategic discretion is motivated by two reasons:

To reduce storage costs. Renting a safe from a gold operator is expensive. If Tether's gold-backed token (XAUT) reached $100 billion, "50 basis points in fees would be a huge amount," explains Ardoino.

Gaining logistical independence. Storing your own gold means ensuring total control—a logical choice in an era where financial sovereignty is becoming a mantra.

XAUT: the golden twin of USDT

In addition to USDT, Tether offers a stablecoin backed by physical gold, Tether Gold (XAUT). Each token represents one ounce of gold stored in Switzerland and is theoretically exchangeable for physical metal. To date, Tether has issued $819 million worth of XAUT, or approximately 7.7 tons of gold.

This is a modest amount compared to gold-backed ETFs, which are much more liquid, but it reveals an ambition: to tokenize gold to make it programmable, exchangeable, and divisible. This vision is aligned with the broader movement towards the tokenization of real assets.

The problem is that regulators do not look kindly on gold in stablecoin reserves. In both the European Union and the United States, current legislation requires reserve assets to be liquid and quasi-monetary (cash, short-term sovereign bonds). In other words, there is no place for gold bars.

If Tether wanted to obtain a regulated license for USDT in these jurisdictions, it would have to sell its gold reserves. And the company knows this. Its strategy therefore seems to be a hybrid one, combining tactical independence with expansion outside the traditional institutional framework.

A disguised geopolitical signal?

Gold is not just a safe-haven asset. It is also a symbol of mistrust towards the dollar and sovereign debt. Ardoino puts it bluntly: "If people start to worry about US debt, they may consider alternatives." " He points to the growing demand for gold from BRICS central banks, which are actively contributing to the rise in the metal's price (+25% since the beginning of the year).

Tether's move fits into this backdrop of de-dollarization, geopolitical tensions, trade wars, and the quest for monetary sovereignty.

Tether remains a controversial company. It has often been accused of being vague about its reserves and its explosive growth has attracted the attention of regulators around the world. Allowing billions of dollars to change hands outside the banking system is a technological feat, but also a challenge for global financial stability.

But Tether is not betting everything on blockchain. Since 2023, the company has been investing heavily in Bitcoin mining: first in El Salvador via Volcano Energy, then in Uruguay with the creation of Tether Power. At the same time, it is developing MOS, an open-source operating system dedicated to mining.

But its ambition goes further...

By acquiring 39% of Northern Data Group (listed in Frankfurt), Tether has entered a new playing field—artificial intelligence. And it does not intend to remain a spectator. In May 2025, CEO Paolo Ardoino outlined an open-source AI ecosystem where wallets, USDT payments, and AI agents are interconnected. The whole thing is based on Pears, a suite of P2P tools co-financed by Tether (remote computers, decentralized messaging, etc.).

Behind the lines of code, more concrete—and sometimes unexpected—investments show how far Tether is extending its reach into various sectors:

Juventus Football Club: Tether owns 8.2% of the Turin-based club, becoming its second-largest shareholder after Exor (the Agnelli family).

Blackrock Neurotech: in April 2024, Tether injected $200 million to become the majority shareholder in this pioneering brain implant company.

Rumble: YouTube's rival video platform received $775 million in Tether in December 2024.

Adecoagro: Tether increased its stake to 70% in this NYSE-listed agricultural holding company specializing in milk, sugar, ethanol, and energy.

Behind the stablecoin, a sprawling holding company is emerging. Tether is no longer content with issuing digital currency: it invests, builds, explores... and is now too big to fail?

Source: marketscreener

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

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Owen Li

Economic

Brazil will consider reciprocal tariffs if US president Donald Trump goes ahead with his threat of a 50pc charge on imports from Brazil, president Luiz Inacio Lula da Silva said.

"Any unilateral tariff increases will be addressed in accordance with Brazil's economic reciprocity law," Lula posted on social media late on Wednesday.

He defended Brazil's sovereignty and said the country "will not accept any form of tutelage".

He rebutted Trump's claim that the US has a "very unfair trade relationship with Brazil", pointing to its long-running trade surplus.

Brazil has run a trade deficit for goods and services with the US adding up to over $400bn over the last 15 years, finance minister Fernando Haddad said in a televised interview.

"This is an eminently political decision, because there is no economic rationale in this measure," he said.

The US is Brazil's second-largest trading partner behind China, receiving $40.3bn worth of exports in 2024, according to the Brazilian secretary of foreign trade.

It is the main market for Brazilian manufactured goods.

The national confederation of industries (CNI), a lobby group, called for negotiations with the Trump government "to preserve the countries' historical trade relationship". A group representing the powerful agribusiness lobby in congress, FPA, also called for diplomatic negotiations.

The tariffs can "severely hamper production, investments and supply chains between the two countries," US-Brazilian chamber of commerce Amcham said.

The tariffs bring uncertainty to the country's oil and gas sector, Brazil's oil chamber IBP said. Crude is Brazil's main export to the US, accounting for $5.8bn last year.

"We are cautiously assessing the true impacts on investments and competitiveness on our industry," IBP said.

The Brazilian real slumped against the US dollar in the wake of Trump's announcement, dropping to R5.6/$1 on Thursday morning before rallying slightly. A weaker real increases production costs for Brazilian companies who rely on imports.

A letter that Trump sent on Wednesday to Lula is one of the 22 that the US leader has sent to his foreign counterparts since 7 July, announcing new tariff rates that the US will charge on imports from those countries.

"I don't think that this situation will continue," Haddad said of the "unsustainable" 50pc levy, highlighting Brazil's diplomatic tradition.

Source: Argus Media

To stay updated on all economic events of today, please check out our Economic calendar

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Adam

Economic

We are now just a few days away from the start of the corporate earnings season. This week, we have put together an overview of the issues at stake in the first reports.This is a key moment when investors will be able to try to tune out the noise surrounding tariffs and Donald Trump's announcements and focus on the fundamentals: earnings per share.

As we enter this pivotal period, the first thing to note is that expectations have been revised downwards. According to Factset, which tracks earnings forecasts on a weekly basis, EPS forecasts have been lowered by 4.3% since the start of the quarter. To provide a comparison basis, over the past five years, the average downward revision of expectations for a quarter has been 3%.

Looking up

Uncertainties, particularly related to tariffs, have therefore led analysts to be more cautious about the second quarter.

Paradoxically, however, this is a factor that makes strategists fairly confident. The reasoning is as follows, as summarized by Max Kettner of HSBC: "Overall expectations have been too low in our view," creating "a very low bar to clear." This is especially true given that US companies are particularly adept at pushing analysts to revise their forecasts downward... so they can deliver a positive surprise on the day the results are released.

The logical conclusion of this reasoning is higher target prices for the S&P 500. In the last few days alone, Bank of America has updated its year-end target from 5,600 to 6,300. Meanwhile, Goldman Sachs has raised it from 6,100 to 6,600.

The general mood is therefore fairly optimistic, even though US indices are already at record highs after a strong rebound in recent weeks, led, as always by tech stocks. Yesterday, the Nasdaq set a new record, not far from 23,000 points, while Nvidia reached the $4 trillion market capitalization mark.

All this comes as Donald Trump has reignited the tariff saga, extending the July 9 deadline until August 1 and broadening the threat with new sectoral tariffs (copper, semiconductors, pharmaceuticals).

The coming weeks will tell us whether the US president will follow through or back down again. At this stage, the market seems to be betting on the latter, given the movements of the last few days.

It is impossible to predict what Donald Trump will do on August 1, but one thing is clear: uncertainty remains, and this will push the Fed to wait and see. A rate cut in July is now definitely out of the question: September also seems rather optimistic as things stand.

The exceptionalism of corporate America

While uncertainty about the US economy remains high, investors have far fewer doubts about the large companies listed on the S&P 500. They continue to bet on the exceptionalism of corporate America, rather than on American exceptionalism.

After all, the S&P 500 is not the US economy, and the index is mainly driven by a few large tech stocks, whose growth trends show no signs of slowing down. A quote from Bank of America sums up the investor mindset perfectly: "The US is not exceptional, but corporate America may be."

Beyond technology, S&P 500 companies have shown in recent years that they can weather shocks, reorganize, and pass price increases on to consumers to preserve their margins.

This pricing power will be put to the test again in the coming months. Now that everyone understands that there will be significant tariffs, the question is who will bear the cost. According to Goldman Sachs' estimates, less than 20% of the cost of tariffs will be absorbed into margins.

Faced with uncertainty, investors are betting on corporate America_1

Finally, another factor that should benefit US companies in the coming quarters is the exchange rate. The dollar has depreciated significantly since the beginning of the year, which is helping US companies' overseas earnings. 40% of S&P 500 companies' revenue is generated internationally.

Since Covid, we have been living in an environment of successive shocks and high uncertainty. And every time investors have doubted, every time the likelihood of recession has risen, it has been the earnings season that has reassured the market. To quote a phrase often used by investors: "Never underestimate corporate America."

Source: marketscreener

To stay updated on all economic events of today, please check out our Economic calendar

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Adam

Economic

US dollar volatility may have settled down in recent weeks, but analysts at Goldman Sachs Group Inc. see plenty of reasons to think it may start trading like a “riskier” currency again.

Analysts Karen Reichgott Fishman and Lexi Kanter list elevated policy uncertainty related to trade tariffs and Federal Reserve independence, fiscal fears and diversification away from US assets as potential triggers.

A steep slide in the dollar this year triggered by President Donald Trump’s threats to impose harsh levies against global trading partners has fueled speculation about a permanent shift in the dollar’s status as a safe-haven asset. While the Goldman analysts don’t predict that will happen, things could still be pretty bumpy in the short term.

“Shifting correlations have left dollar strength in periods of risk-off a less reliable outcome,” the analysts wrote in a note published July 9.

By some measures, the dollar has continued to trade like a risky currency even as it has stabilized in recent weeks. Data compiled by Bloomberg show that the correlation between the greenback and a widely watched G-10 volatility gauge is near its lowest in seven years.

That signals that the dollar is behaving less like a haven and more like a source of volatility. For much of the past 15 years, the correlation was firmly positive. It also puts the long-standing market belief that hedging costs fall when the dollar weakens into in question.

What Bloomberg strategists say...

“The outlook for the dollar is negative over the long term for multiple reasons: less global trade, de-dollarization, re-setting of hedging ratios. Yet it has undeniably sold off a lot already, and markets rarely take the direct path to where they are ultimately going. A bounce is probably in order.”

One of the most “striking” developments of 2025 has been the dollar’s increased tendency to sell off alongside US equities, the Goldman Sachs analysts said. The dynamic has occurred more than twice as often so far this year as over the prior 10 years, they said.

The “more concerning sign of reduced US asset appeal” — when equities, Treasuries and the dollar all fall together — has also been more common, according to the note.

Source: Bloomberg

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Adam

Cryptocurrency

Bitcoin (BTCUSD) powered past $112,000 to another record high yesterday, its first since late May, before consolidating in early trade on Thursday.

In recent months, the cryptocurrency has received a boost from more companies adding it to their corporate treasuries and lawmakers working towards passing pro-crypto legislation.

Bitcoin trades nearly 50% above its early April low and has gained 19% on the year, roughly matching the returns of Magnificent Seven members, Nvidia (NVDA) and Microsoft (MSFT) over the same period.

Below, we take a closer look at the technicals in bitcoin’s chart and identify major price levels worth watching out for.

Descending Channel Breakout

Bitcoin’s price nudged above the top trendline of a descending channel on Wednesday, paving the way for a continuation move higher. Moreover, the relative strength index (RSI) confirms bullish momentum and remains below overbought levels, providing ample room for the digital asset to move into price discovery mode.

However, it’s worth pointing out that trading volume continues to dwindle on Coinbase (COIN), the largest U.S.-based crypto exchange, suggesting that larger market participants, such as institutional investors, may be accumulating the asset through spot bitcoin exchange-traded funds (ETFs) rather than exchanges.

Let’s use technical analysis to project a potential upside target on bitcoin’s chart and also locate several major price levels where the cryptocurrency could find support.

Chart-Based Upside Target

Investors can project an upside target in bitcoin by using the measuring principle, a technique that analyzes price swings on the chart to forecast future price levels.

When applying the analysis, we calculate the distance of the cryptocurrency’s uptrend that preceded the descending channel and add that amount to Wednesday’s breakout point. This projects a target of $146,400 ($37,600 + $108,800), implying 32% upside from bitcoin’s current trading levels.

Major Support Levels to Watch

During retracements, investors should initially watch the $107,000 level. This point, currently situated just below the descending channel’s upper trendline, could provide support near the 50-day moving average and prominent December and January peaks.

Finally, the bulls’ failure to successfully defend this major level opens the door for a retest or lower support around $100,000. Investors could look for entry points in this region near the descending channel’s lower trendline, which also closely corresponds with a range of trading activity on the chart stretching back to last November.

Source: finance.yahoo

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Devin

Commodity

Economic

Gold prices continue to tread water around $3,300 an ounce, buoyed by broader investor optimism and a one-month delay in U.S. import tariffs. Although shifting investor sentiment could continue to weigh on gold, one research firm expects prices to remain well supported through the rest of the year.

In their latest note, commodity analysts at Metals Focus said they see limited downside for gold in the second half of the year as ongoing economic uncertainty is expected to support investment demand.

“Although the global economy appears to have avoided a full-scale trade war, U.S. tariffs are expected to remain historically high for some time. Perhaps more significantly, while the U.S. economy has remained resilient thus far, the inflationary impact of tariffs may take several months to fully resonate with consumers. The risk of stagnation is therefore likely to persist,” the analysts said in the report.

Spot gold last traded at $3,315.76 an ounce, roughly unchanged on the day.

The British precious metals research firm added that concerns about unsustainable global debt are another factor likely to support gold’s long-term uptrend. Specifically, investors are keeping a close eye on U.S. government debt, which has now surpassed $37 trillion.

At the same time, new budget legislation is expected to increase the deficit by nearly $4 trillion over the next 10 years. Fears over the size of the U.S. government’s debt have kept long-term bond yields elevated and pushed the U.S. dollar to multi-year lows.

“President Trump’s tax-and-spending bill is projected to widen the deficit, keeping bond supply concerns in focus. Investor confidence in the independence of the U.S. central bank will also remain a key issue. While the dollar’s role as the primary reserve currency is not under immediate threat, longer-term concerns about its stability continue to support gold,” they said.

Some analysts have noted that gold could struggle in the second half of the year as bullish positioning has become overcrowded. However, Metals Focus noted that positioning in July has eased.

“At the start of July, net managed money long positions in CME futures returned to levels last seen in April, though they remain well below the highs recorded earlier in the year,” the analysts said. “Similarly, after modest outflows in May, gold exchange-traded products (ETPs) saw renewed inflows in June, with global holdings by the end of June rising to their highest level since August 2022. Measured in U.S. dollar terms, gold ETPs reached a new all-time high end-month value of $383 billion.”

Source: Kitco

To stay updated on all economic events of today, please check out our Economic calendar

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Adam

Stocks

Stocks Hold Ground as AI Strength Counters Trump Tariff Tensions

Daily E-mini Nasdaq 100 Index Futures

Stocks were little changed early Thursday. Traders gauged the market’s resilience after Trump’s 50% tariffs. Strong AI momentum continued to buoy sentiment.

S&P 500 futures dipped 0.1%. Nasdaq-100 futures hovered near flat. Dow futures fell 75 points.

On Wednesday, the Nasdaq closed at a record high. Nvidia’s gains and bullish AI sentiment helped traders look past tariff concerns.

Can Ongoing AI Optimism Offset Tariff Pressures?

Daily NVIDIA Corporation

NVIDIA briefly hit a $4 trillion valuation after rising nearly 2%. This fed optimism that AI-driven productivity and capex could cushion the impact of higher prices from tariffs.

Jeremy Siegel told CNBC that AI could counter tariff-induced price pressures. This reinforced the bullish tone.

Advanced Micro Devices rose 2% in premarket trading after an HSBC upgrade. The upgrade cited strong pricing for AMD’s new AI chips as a revenue upside catalyst.

The Nasdaq gained 0.9% Wednesday. Traders see AI as a core pillar for bulls holding the market’s recent highs.

Will Federal Reserve Rate Cuts Face Delays from Tariff-Driven Inflation?

The Federal Reserve’s June minutes showed policymakers split on the timing of rate cuts. Tariff-related price pressures loom, adding complexity to the Fed’s path.

Bank of America expects firmer inflation in the coming months. Tariffs and higher equity prices driving up portfolio management fees may push inflation higher.

Initial jobless claims fell unexpectedly to 227,000. This signals a resilient labor market.

However, continuing claims climbed to 1.96 million, the highest since late 2021. Traders remain alert for signs of labor market cracks that could guide Fed policy.

How Are Sectors and Key Stocks Reacting to Trade Headlines?

Brazilian stocks retreated after Trump’s 50% tariffs on Brazilian imports. The iShares MSCI Brazil ETF fell 2%. Petrobras also traded lower.

Nasdaq 100 and S&P500: AI Surge Keeps US Stocks Steady as Traders Eye Fed and Tariffs_3

Daily MP Materials Corp.

MP Materials surged 41% after the Pentagon said it would become its largest shareholder. The move will expand U.S. rare earth processing capacity.

Delta Air Lines jumped 11% after reinstating its profit outlook and posting Q2 beats. WK Kellogg soared 30% on a $3.1 billion buyout from Ferrero.

Helen of Troy tumbled 16% after issuing weak guidance, showing the divergence in stock reactions during earnings season.

What Should Traders Watch Next?

The market’s next test comes as second-quarter earnings season ramps up next week. Traders will see if AI momentum and consumer resilience can offset tariff concerns.

Investors will also track inflation data and Fed commentary to gauge rate cut timing.

If tariff impacts remain limited, the bull market could extend. But deeper supply chain pressures could add volatility to Q3 positioning.