Gold’s continued importance, a significant crypto liquidation, tokenized collateral in derivatives, and Tether potentially at a $20B valuation had Web3 tongues wagging this week.
The importance of holding stable assets in a turbulent market environment
“Many investors feel calmer keeping a chunk of their savings in something boring like gold. When markets start whipping around, it’s good to have one asset that doesn’t pull back several in response to a bearish Fed statement.”
“If you’re an institution, holding stable assets shouldn’t feel clunky anymore. RWA-native blockchain setups where gold or treasury bills live on-chain with full compliance baked in means you can actually move or pledge real assets without endless paperwork. It’s also providing a glimpse of how traditional stuff and crypto can actually work together.”
– Blake Jeong, co-CEO of IOST
“In uncertain markets, investors turn to stable assets like gold to preserve value. What’s changing is that blockchain now makes it possible to access the same type of stability through tokenized real-world assets such as treasuries, real estate, and credit. At Lendr, we see this as the next evolution of the ‘safe haven’ trade: combining the resilience of traditional assets with the accessibility and efficiency of decentralized rails.”
– Nathaji Metivier, CEO and CTO of Lendr.fi
“The nominal price of gold clearly turns on macro headwinds re: how the US operates with respect to MS. It’s clear: we have the development of IMF in 1971 (and preceding that the ditching of the gold standard for backing US dollar — th emove to fiat). We have 9/11 and the expense of two wars and the ’08 Great Recession. And now, we have COVID and the Trump era + crypto adoption (fiat replacement). Gold is becoming the choice of international institutions and nation-states in this framework because — smartly — other nation-states realize that via stablecoins pegged to USD, adoption of bitcoin is an upstream insitigator of their own currencies’ obsolescence.”
– Dylan Dewdney, co-founder and CEO of Kuvi.ai
“Gold’s role in turbulent markets is less about returns and more about trust. It sits outside the credit system, outside politics, outside the daily noise, and that’s why it survives every cycle. In environments where liquidity dries up and volatility spikes, people aren’t really searching for yield, they’re searching for certainty. A stable reserve asset like gold provides a kind of psychological anchor that markets can organize around. The broader lesson is that every financial system needs something untouchable at its core. In a world of constant innovation, the importance of having assets that are boring, durable, and universally recognized only grows stronger.”
– Sid Sridhar, founder and CEO of BIMA Labs
The biggest crypto liquidation event, like ever?
“Seemingly out of nowhere, we have just seen the biggest crypto long liquidation event of the year – right after the Federal Reserve announced its first rate cut in nine months. The sell-off came unexpectedly, like a freak storm, and caught many crypto bulls entirely by surprise.”
“Yet, even as Bitcoin, Ethereum and other digital asset prices plummeted, gold has been hitting fresh all-time highs. This reversal of fortunes should act as a reminder that even in a raging bull market, in which we undoubtedly find ourselves today, stable collateral is imperative to a successful investment strategy.”
“Assets like gold provide the firepower to take advantage of falling prices during major liquidation events like this one, instead of watching helplessly from the sidelines. And, with more and more tokenized versions of real-world assets (RWAs) coming on-chain, they are becoming an integral part of the decentralized finance (DeFi) ecosystem.”
“Regardless of the overall market trajectory, digital asset prices never go up in a straight line. Liquidations like this can and do happen more as the market gets overheated. It’s worth remembering that despite the sell-off, the overall crypto market cap is sitting barely 5% below its ATH, so we’re in uncharted waters now. Stable, real-world assets like gold can act as a life raft that keeps a portfolio afloat when turbulence hits.”
– Kevin Rusher, founder of real-world asset (RWA) borrowing and lending ecosystem RAAC
CFTC to bring tokenized collateral into derivatives
“The CFTC’s initiative to bring tokenized collateral into derivatives markets is a watershed moment. It signals that tokenization is moving from theory to practice.”
“For tokenized assets to work as collateral, whether stablecoins, treasuries, or commodities, their value has to be clear, accurate, and trusted in real time. Even a one-second delay or error in a price feed can destabilize a protocol. That’s why reliable oracle infrastructure isn’t a side detail; it’s the foundation that makes tokenized collateral usable.”
“At the same time, the infrastructure has to scale. We need systems that can support thousands of blockchains and hundreds of thousands of assets, while also meeting the benchmarks and risk standards that clearing houses and brokers already rely on.”
“The CFTC leaning into tokenization is the right direction. The next step is making sure the data backbone behind it is precise, transparent, and built for global markets.”
– Marcin Kazmierczak, co-founder of RedStone
“The idea of the CFTC bringing tokenized collateral into derivatives markets just makes sense. Tokens move cleaner, margin calls land faster, and ops folks can breathe a little. This should be the cue for tokenized equities to grow up.
“Without proper lending, term funding, and hedging, you’re stuck. Add real repo, securities lending, and futures or options that treat tokenized shares as first-class collateral, and market makers hold size. Better netting, solid finality, and transparent audit trails cut disputes and busywork.”
– Hedy Wang, co-founder and CEO, Block Street
Crypto titan Tether seeks $20B: Is this the breakout moment?
“If Tether secures capital of this magnitude, it’ll likely recast stablecoins as investable assets in their own right. Institutional investors have treated them as functional tools. A valuation approaching half a trillion dollars can be expected to force a reassessment of that view.”
“Such a raise would give Tether the resources to reinforce reserves, expand disclosure, and accelerate institutional adoption at a time when demand for a dependable, dollar-pegged digital instrument is intensifying. The credibility conferred by heavyweight investors will change the conversation.”
“Capital of this scale raises the bar for the entire sector. Investors will demand greater transparency, stronger reserve management, and rigorous regulation from every player. We expect that this discipline will accelerate mainstream adoption.”
“This could be a decisive step toward stablecoins becoming core infrastructure for the global financial system. We are witnessing the point where a stablecoin issuer could sit alongside the biggest private technology companies in valuation and influence.”
“Institutional portfolios that once ignored stablecoins will start treating them as strategic holdings. Liquidity management, yield strategies, and on-chain settlement all benefit when a dollar-linked token achieves this level of acceptance.”
“This is about more than one company; it’s about the maturation of a sector. Should Tether close a deal on these terms, stablecoins will move from supporting act to headline asset class, with many global investors not wanting to be ‘late to the party’.”
– Nigel Green, founder and CEO of deVere Group
“Tether exploring a raise that would value the company near half a trillion dollars is a signal of where we are in the financial system. Stablecoins are no longer niche crypto tools. They are becoming a core layer of internet money, as fundamental as TCP/IP was for information.
“A valuation at this scale reflects the shift from thinking about stablecoins as speculative tokens to seeing them as global settlement infrastructure. The story here is not just about Tether. It is about stablecoins becoming the backbone for how money will move on the internet in the decades ahead.”
– Sridhar