Tether Considering Large-Scale Gold Investment
Paxos Propose USDH on Hyperliquid | Record Growth as Polymarket Loses Traders
Marco Manoppo & Karon Pangestu
September 08, 2025
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In Today's Email:
What Matters: Tether Considering Large-Scale Gold Investment đź‘€
Product of the Week: Paxos Propose USDH on Hyperliquid đź’µ
Charts: Ethena Rally, Record Market Growth as Polymarket Loses Traders đź“Š
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Narratives: Institutional Moves
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WHAT MATTERS
Tether Considering Large-Scale Gold Investment
State of play: Tether, the world’s largest stablecoin issuer, is weighing a major move into the gold industry, according to the Financial Times.
Tether has reportedly held talks about investing across the entire supply chain, from mining and refining to trading and royalties.
CEO Paolo Ardoino hinted at the report’s accuracy with a cryptic “stability maximalism” comment on X.
Tether already has exposure to gold through XAUT, backed by 7.66 tons of reserves stored in Swiss vaults, and through stake in Elemental Altus Royalties.
Still, its rumored plan for deeper involvement has left mining and commodities executives baffled.
The timing comes as gold hit a record $3,650 per ounce on Friday.
Why it matters: If it follows through, the world’s biggest stablecoin issuer may become a serious player in a market long dominated by conservative institutions.
Our take: This looks less like a clear strategy and more like Tether flexing its war chest.
For builders and investors: Expect more crossover plays between crypto liquidity and real-world assets.
PRODUCT OF THE WEEK
Paxos Propose USDH on Hyperliquid
Paxos is proposing USDH, a new stablecoin built specifically for Hyperliquid. Unlike generic dollar-pegged tokens, USDH is designed to funnel its reserve income directly back into the ecosystem.
Compliance first: Issued by Paxos under GENIUS, MiCA, and other global frameworks, backed by high-quality reserves like T-bills and repos.
Hyperliquid-native: Runs on HyperEVM and HyperCore, integrating deeply with existing protocols.
Revenue sharing: 95% of interest earned on reserves would be used to buy back HYPE, then redistributed to protocols, validators, and users.
Scale and trust: Paxos brings experience from Binance USD and PayPal USD, plus global banking rails for on/off-ramps.
Aligned incentives: Builders and contributors benefit directly as ecosystem growth translates into more HYPE buybacks.
In short, USDH aims to be a compliant, yield-sharing stablecoin that anchors Hyperliquid’s next growth phase by turning stablecoin float into fuel for HYPE.
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CHARTS OF THE WEEK
Record Market Growth as Polymarket Loses Traders
State of play: Polymarket created 13,800 new markets in August, a record for the platform and roughly 2,000 more than July. Despite record market creation, activity has slowed:
Active traders fell to about 227,000, the lowest since October 2024, while volume has hovered near $1B for months, down from a $2.6B peak during the election.
CEO Shayne Coplan said the platform now has the “green light” to re-enter the US after the CFTC took a no-action stance on certain event contracts. Polymarket plans to return for the first time since 2022 through its acquisition of derivatives exchange QCEX.
The platform has drawn high-profile backers including Donald Trump Jr, who recently joined its advisory board, and X, which announced a partnership.
Our take: Polymarket is expanding breadth but not depth. The surge in new markets shows strong creator enthusiasm, yet stagnant volumes and fewer active traders hint at a plateau in real demand.
Ethena Rallies on $530M StablecoinX Raise
State of play: Ethena’s ENA token surged nearly 12% after StablecoinX, a treasury firm tied to the USDe issuer, secured $530M in new PIPE financing.
The round, which brings total fundraising to $895M, included investors like Brevan Howard, Susquehanna Crypto, IMC Trading, and YZi Labs.
StablecoinX plans to list on Nasdaq under ticker USDE in Q4 and will use the funds to buy locked ENA tokens from an Ethena Foundation subsidiary.
That subsidiary will then purchase $310M ENA from spot markets over the next two months. 7.3% of ENA’s supply has been acquired, with a target of 13%.
Our take: The raise looks impressive on paper, but it also concentrates ENA supply in the hands of a treasury vehicle tightly tied to Ethena itself.
QUICK BITES
Tether weighing large-scale gold investment.
Kinto shuts down in wake of $1.6M July exploit.
Trump Media closes deal to buy 684M CRO tokens.
Ethereum revenue dropped 44% in August amid ETH all-time high.
Metaplanet buys $15M in Bitcoin, total holdings now at 20,136 BTC.
Bitcoin whales dump 115,000 BTC in biggest sell-off since mid-2022.
Paxos, Frax, and Agora fight for Hyperliquid's USDH stablecoin contract.
Polymarket hits ATH for new markets created as platform eyes US return.
Senate market structure bill draft proposes SEC–CFTC joint committee.
Ethena jumps 12% after treasury firm StablecoinX secures $530M investment.
NOTEWORTHY READS & MEME
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— qw (@QwQiao)
9:56 PM • Sep 6, 2025
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