I'd be happy to store my crypto gains in Gold stables during longer-term crypto uncertainty or bear runs vs. USD stables.

Especially as DXY is down by 10% since January.

Last cycles it wasn't an option but now gold-backed stablecoins hit a $1.9B market cap.

PAX Gold and Tether's each have ~$840M MC.

Yet, their onchain liquidity is... not great not terrible..

Trading $1m USDC on Cowswap with 0.76% slippage.

Still, liquidity is improving as more DeFi protocols add them as collateral:

- Fluid supports both with 9.3% yield
- Aave just voted to Temp check to onboard XAUt
- Curve supports XAUt-PAXG LP with 2% yield

But how fast can they grow?

Problem: fiat backed stablecoins earn interest from U.S. Treasuries but gold has no yield.

Instead, both Paxos and Tether charge a 0.25% issuing and redeeming fees (although Paxos fees depend on amounts).

So profitability depends on their issuance/redemption fees.

Obviously, the higher the MC of gold stables, the more transactions will happen thus higher fees are generating.

And they need them to get integrated into DeFi and trading platforms.

Anyone knows how much both issuers make from Gold stables?

btw, fun fact: both issuers hold physical gold, not ETFs. Tether holds it in Switzerland vaults while Paxos in London.