Gold Takes the Lead as Dollar Slides, BTC Recast as Companion

Bitcoin (BTC) has long been promoted by its most ardent supporters as a hedge against monetary debasement, but as the US dollar slides to multi-year lows, the market’s clearest flight to safety is emerging elsewhere: in gold.

Over the past year, investors have rediscovered the precious metal through both traditional channels and blockchain rails. Tokenized gold products like XAUt are gaining traction alongside spot prices, offering digital-native exposure to a centuries-old safe haven as inflation concerns and currency stress intensify.

Bitcoin is still very much in the picture, though increasingly as a secondary beneficiary. Actively managed exchange-traded funds (ETFs) are pairing BTC with gold as complementary defenses against fiat erosion, positioning Bitcoin less as a proven hedge and more as a higher-volatility companion to hard assets.

This week’s Crypto Biz traces that shift, from tokenized bullion and hybrid ETFs to Wall Street’s growing embrace of stablecoins and crypto banking charters. In periods of currency stress, gold still leads. Crypto is learning how to follow.

Tokenized gold surges as dollar hits four-year low

It’s not just traditional investors piling into gold. Digital asset investors are increasingly turning to tokenized versions of the precious metal as the US dollar weakens and concerns over currency debasement and inflation intensify.

Tether said its gold-backed stablecoin, Tether Gold (XAUt), now accounts for more than half of the tokenized gold market, with a total market value of more than $2.2 billion. As of the end of the fourth quarter, 520,089 XAUt tokens were in circulation, each backed one-to-one by physical gold bullion, according to the company.

The surge in demand comes as gold prices climbed above $5,300 per troy ounce, up about 90% over the past year, while the US dollar continues to erode. Bloomberg’s spot US dollar index recently fell to its lowest level in four years.

Bitwise pairs Bitcoin and gold in actively managed ETF

Asset manager Bitwise has launched a new ETF designed to protect investors from currency debasement by pairing Bitcoin with gold and other precious metals.

The Bitwise Proficio Currency Debasement ETF debuted on the New York Stock Exchange under the ticker BPRO. The actively managed fund is designed to hedge against the declining purchasing power of the US dollar and other fiat currencies.

The portfolio includes exposure to Bitcoin, precious metals and mining stocks and is designed for wealth managers seeking Bitcoin exposure without directly allocating to a crypto-specific product.

Fidelity unveils US dollar stablecoin

Fidelity is gearing up to launch its own dollar-pegged stablecoin as it pushes deeper into the regulated digital finance space. 

Called the Fidelity Digital Dollar (FIDD), the upcoming stablecoin is expected to align with the GENIUS Act’s federal standards for payments-focused digital dollars, including reserve backing and oversight requirements. Fidelity executives have pitched stablecoins as foundational for real-time settlement and 24/7 payment infrastructure, signaling a shift toward mainstream use beyond trading.

The initiative comes as traditional finance heavyweights explore blockchain rails and regulators craft clearer rules for US stablecoins, marking another step in institutional adoption of crypto-native settlement systems.

Nomura-backed digital asset company eyes US banking charter

Laser Digital, a Nomura-backed digital asset company, has reportedly applied for a US national bank trust charter with the Office of the Comptroller of the Currency, marking a major push to bring crypto services into the US-regulated banking framework.

If approved, the charter would let Laser Digital operate nationwide under a single federal license, bypassing state-by-state custody requirements, and offering spot trading for digital assets without taking customer deposits.

The move comes amid a broader surge in crypto charter applications in a more permissive US regulatory climate, with several digital asset companies eyeing federal trust bank status to deepen integration with traditional finance.

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