Kinesis Gold (KAU)

Gold-Backed stablecoins are overhyped and crypto users are about to find out the hard way.

Imagine some people think that the rising gold prices are going to push gold-backed stablecoins but the truth is that adoption Is still a long way off.

The surge in gold prices to unprecedented levels exceeding $4,690 per troy ounce so far is catalyzing renewed interest in gold-backed stablecoins and commodity-linked digital assets.

Gold-backed stablecoin market capitalization already crossed $4.2 billion during earlier gold rallies, and with current price momentum, many expect this figure to grow significantly.

On the surface, the narrative is simple:
If people trust gold, and they already trust stablecoins, then gold-backed stablecoins should be the perfect bridge between traditional value and onchain finance.

But the reality is far more complicated and in many ways, gold-backed stablecoins may be fundamentally misaligned with what crypto markets actually need.

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Wall Street is very bullish on gold. Major banks