Both involve gold plus "certificates," so why did Jereh collapse while Tether continued to profit immensely?

Author: Conflux

In late January, a gold trading platform called "Jieworui" collapsed in Shuibei, Shenzhen.

Tens of thousands of users are queuing to withdraw their funds through a mini-program. Even with a daily limit of 500 yuan or 1 gram of gold, numerous applications are still being rejected. Some users have over 900,000 yuan in principal and hundreds of grams of gold in their accounts, yet they can't withdraw a single penny. The platform claims that the assets have not been transferred and is "coordinating a solution," but the repayment plan offered is either a 20% cut of the principal with a one-time withdrawal or a 40% cut with 12 installments.

This is a classic example of the collapse of informal finance.

However, on the other side of the world, a “golden giant” from the crypto world is quietly expanding.

According to Tether CEO Paolo Ardoino, Tether has accumulated nearly 140 tons of gold. This places it among the top 30 gold holders globally, surpassing the official reserves of countries like Greece and Qatar.

On the surface, Goldman Sachs and Tether are doing the same thing—building credit with gold. But they are heading towards two completely opposite ends.

The real problem with J.W.R. is that it turned gold into a highly leveraged gambling tool.

In so-called "pre-determined price trading," users only need to pay a deposit of a few dozen yuan to lock in the buying and selling price of 1 gram of gold; if the gold price rises, the user pays the full amount upon maturity; if the gold price falls, the platform will repurchase the gold at the agreed price.

This is not spot trading, but a hidden options trading platform where retail investors and the platform are at odds. If a user makes money, the platform makes up the difference; if a user loses money, the platform takes the margin.

When precious metal prices surge in 2025–2026, a large number of retail investors will see unrealized profits, while the platform will lack verifiable hedging and reserves, resulting in a direct accumulation of risk on its own books.

The higher the price of gold rises, the more difficult it becomes for this system to maintain, which is the fundamental reason why bank runs occur at the height of the market boom.

While both are "gold certificates," Tether's gold stablecoin, Tether Gold (XAUT), employs a completely different financial structure:

• Each XAUT corresponds to 1 ounce of physical gold.
• Supply and gold reserves are strictly 1:1

It is not a leveraged product, not a pre-sale price, and certainly not a bet.

As of the end of the fourth quarter of 2025, XAUT accounted for more than half of the total share of gold stablecoins, holding a total of 520,089.350 ounces of physical gold, with a total market value exceeding US$2.2 billion.

At the same time, Tether continues to increase its gold holdings within its overall reserve structure. Its current physical gold reserves are approaching 140 tons, and it plans to continue increasing its holdings.

This means that it is not using gold to back a highly leveraged trading platform, but rather incorporating gold into its own balance sheet and holding it long-term as part of the stablecoin system.

Against the backdrop of highly unstable global geopolitics and the frequent weaponization of the dollar-based financial system, the significance of physical gold has changed: it is no longer just a safe-haven asset, but an anchor of cross-system credit. Tether is using gold to build a "sanctions-resistant" fortress of trust for its dollar-denominated stablecoin USDT and even the entire crypto ecosystem.

In early 2026, precious metal prices rose sharply.

This is a disaster for JWR, which relies on centralized credit and has opaque funds and reserves. But for Tether, it's the opposite. Because it holds physical gold—as gold prices rise, its balance sheet automatically expands.

With soaring gold prices, Tether has appreciated its gold holdings by over $5 billion, bringing the total value of its gold reserves to over $23.3 billion. Tether even plans to purchase 1 to 2 tons of gold per week in the coming months and has hired senior HSBC traders to actively capture arbitrage opportunities.

Both are "gold + certificates," but one collapsed during a run on the bank, while the other thrived during a market upturn.

When precious metal prices fluctuate wildly, what is truly tested is not "who has higher returns," but whose structure is more resilient to shocks.

The collapse of JWG is a tragedy for traditional financial shady businesses. Meanwhile, the rise of Tether Gold points to the future direction of gold investment in the digital age.

In today's increasingly uncertain global environment, "digital gold bars," with their transparent, verifiable, and censorship-resistant characteristics, are becoming a highly promising "value fortress" outside of the traditional gold and fiat currency system.

*The content of this article is for informational purposes only and does not constitute investment advice. Investing involves risk; please invest cautiously.

Related reading: The hidden manipulators behind the gold price surge: This cryptocurrency institution, which earns billions of dollars a year, has hoarded 140 tons of gold .