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Tether’s 80-Ton Gold Stockpile Enhances Its Financial Clout And Hedges Against Fiat Risks

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Tether Holdings SA, the issuer of the world’s largest stablecoin USDT, reportedly holds nearly 80 tons of gold, valued at approximately $8 billion, in a private vault in Switzerland. This makes Tether one of the largest gold holders globally outside of banks and nation-states. The company, headquartered in El Salvador, owns the majority of this stockpile outright, with the vault described by CEO Paolo Ardoino as “the most secure vault in the world.” The exact location and establishment date of the vault remain undisclosed for security reasons.

Tether’s gold reserves, which include 7.7 tons backing its gold-backed token XAUT (valued at around $819 million), represent nearly 5% of its $112 billion reserve portfolio, according to a March 2025 attestation. The decision to store gold in its own vault rather than using third-party custodians was driven by cost savings, as commercial vault operators typically charge around 50 basis points. Ardoino emphasized gold’s role as a hedge against fiat currency instability, citing rising U.S. debt and increasing gold purchases by BRICS central banks as factors driving demand. However, only a small fraction of Tether’s USDT reserves (less than 5%) is backed by gold, raising questions about the transparency of the remaining 95% of assets supporting USDT’s peg, as no full audit has been conducted.

Regulatory challenges may also impact Tether’s strategy, as U.S. and EU regulations could require stablecoin reserves to prioritize cash and government bonds, potentially forcing Tether to adjust its gold holdings. Despite this, Tether’s gold position is comparable to that of major banks like UBS Group AG, highlighting its significant presence in the precious metals market.

Tether’s 80-ton gold reserve, positioning it among the largest non-bank, non-state holders, could influence gold market dynamics. Its substantial holdings may contribute to price stability or volatility, depending on Tether’s buying or selling activities. As central banks, particularly in BRICS nations, increase gold purchases to hedge against fiat currency risks, Tether’s stockpile aligns it with this trend, potentially amplifying its influence in global commodity markets.

Only a small portion (~5%) of Tether’s $112 billion USDT reserve is backed by gold, with the majority supporting its XAUT token. This raises questions about the composition and transparency of the remaining 95% of USDT reserves, as Tether has not undergone a full audit. The reliance on gold as a hedge against fiat instability signals a strategic diversification but may expose Tether to scrutiny if regulators demand more traditional reserve assets like cash or government bonds.

U.S. and EU regulations could challenge Tether’s gold-heavy reserve strategy. Stablecoin issuers may face requirements to prioritize liquid assets like government securities, potentially forcing Tether to reduce its gold holdings or restructure its reserves. Non-compliance could lead to legal or operational restrictions, especially given Tether’s past regulatory controversies and lack of transparency.

Tether’s gold accumulation reflects broader concerns about fiat currency devaluation, particularly with rising U.S. debt and global economic uncertainty. By holding gold in a private Swiss vault, Tether positions itself as a counterweight to traditional financial systems, aligning with El Salvador’s crypto-friendly policies and skepticism toward centralized banking. This could appeal to investors seeking alternatives to fiat-based assets but may also attract scrutiny from governments wary of unregulated financial players.

Owning and securing its own vault in Switzerland, described as “the most secure in the world,” reduces Tether’s reliance on third-party custodians and cuts costs (e.g., avoiding ~50 basis point fees). However, maintaining such a facility involves significant logistical and security challenges. Any breach or mismanagement could undermine confidence in Tether’s operations and its stablecoin’s peg.

Tether’s massive gold reserves may bolster its image as a financially robust entity, but the lack of transparency regarding the vault’s location, reserve composition, and audit status could fuel skepticism. Investors and users may question whether Tether’s gold holdings adequately back USDT’s $112 billion market cap, especially given historical criticisms of its reserve practices.

As a dominant stablecoin issuer, Tether’s gold strategy could influence other crypto firms to diversify into physical assets, potentially bridging traditional and digital finance. However, if regulatory pressures force Tether to liquidate gold holdings, it could disrupt the crypto market, particularly for USDT-dependent trading pairs, which dominate global crypto liquidity.

Tether’s gold stockpile enhances its financial clout and hedges against fiat risks but introduces regulatory, transparency, and operational challenges. Its strategy could reshape stablecoin reserve practices while amplifying its role in global markets, though it risks heightened scrutiny from regulators and investors demanding accountability.

Nvidia Becomes The First Company to Hit A $4 Trillion Market Cap

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Nvidia made history by becoming the first company to reach a market capitalization of $4 trillion. This milestone was briefly achieved during intraday trading, although the stock closed slightly below that mark. The achievement highlights Nvidia’s extraordinary growth and its pivotal role in the artificial intelligence (AI) revolution.

Nvidia’s surge to $4 trillion underscores its dominance in the AI hardware sector, particularly through its graphics processing units (GPUs). These chips are essential for powering advanced AI applications, including large language models like those behind ChatGPT. Since ChatGPT’s debut in late 2022, demand for Nvidia’s GPUs has soared, driving the company’s stock price to new heights. In 2025 alone, Nvidia’s shares have risen by 22%, building on a more than fifteenfold increase over the past five years.

While Apple and Microsoft have also surpassed $3 trillion, Nvidia is the first to reach $4 trillion, cementing its position as a leader in the tech industry. The primary driver of Nvidia’s valuation is its leadership in the AI chip market. The explosion of AI applications has created unprecedented demand for Nvidia’s GPUs. Despite challenges like U.S. export restrictions on advanced chips to China, Nvidia continues to innovate, recently announcing the Blackwell Ultra AI platform. Wall Street’s optimism about AI’s future has fueled investor enthusiasm for Nvidia.

Nvidia’s growth hasn’t been without hurdles. U.S. export controls have led to significant revenue losses in markets like China. However, the company’s ability to adapt and innovate has kept its trajectory upward. Still, some investors worry about market concentration and whether the AI boom is sustainable long-term.

Analysts are bullish on Nvidia’s future, with some predicting a $5 trillion valuation in the coming years. This milestone not only reflects Nvidia’s market dominance but also raises broader questions about the tech industry’s reliance on a single company for critical AI infrastructure.

Nvidia’s rise to a $4 trillion market cap on July 9, 2025, marks a historic moment, driven by its central role in the AI revolution and its ability to capitalize on one of the most transformative trends in technology today. Nvidia’s historic achievement of reaching a $4 trillion market capitalization on July 9, 2025, carries significant implications for the company, the tech industry, investors, and the broader economy.

This milestone cements Nvidia’s dominance in the AI hardware market, particularly through its GPUs, which are critical for AI applications. It reflects the company’s success in capitalizing on the AI boom. A $4 trillion valuation could attract more investment, enabling further innovation and expansion. However, it also heightens expectations for Nvidia to sustain its growth and performance.

As Nvidia’s market power grows, it may face increased scrutiny from regulators concerned about potential monopolistic practices or excessive control over the AI chip market. Nvidia’s success underscores the massive demand for AI hardware, likely spurring other companies to invest heavily in AI research and development. This could drive further innovation across the sector.

Nvidia’s dominance might limit competition if smaller firms struggle to keep up, potentially reducing diversity in AI hardware solutions and stifling long-term innovation. The rise of Nvidia highlights the growing importance of AI hardware, potentially reshaping the tech industry’s balance of power where hardware becomes as vital as software. Nvidia’s milestone signals strong growth opportunities in AI and tech, possibly boosting interest in related stocks. However, it also reflects market sentiment, which can be unpredictable.

A $4 trillion market cap raises questions about whether Nvidia’s stock is overvalued, especially if AI growth slows. Investors must weigh the potential for high returns against the risk of a market correction. This achievement might prompt investors to diversify, avoiding overexposure to tech or AI stocks given the sector’s volatility. Nvidia’s success fuels economic expansion, job creation, and technological progress, particularly in the tech sector, while reinforcing AI’s economic potential.

The concentration of wealth in tech giants like Nvidia could widen economic inequality. Additionally, the environmental impact of energy-intensive AI hardware calls for sustainable solutions. Nvidia’s leadership strengthens the U.S.’s position in the global tech race, but it also emphasizes the need for policies that ensure broad benefits and continued innovation.

Nvidia’s $4 trillion market cap is a landmark event that showcases its pivotal role in the AI revolution. It promises growth, innovation, and economic benefits, but also raises concerns about market concentration, regulatory oversight, and equitable progress. Stakeholders must address these opportunities and challenges as Nvidia continues to shape the future of technology and the economy.

Dangote Refinery to End Crude Imports by December 2025, Eyes Full Reliance on Nigerian Oil

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The Dangote Petroleum Refinery is set to phase out all crude imports by December 2025, replacing foreign supply with Nigerian oil, according to Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries.

The plan, which would see the 650,000 barrels-per-day (bpd) facility rely entirely on domestic crude, marks a significant shift in Nigeria’s energy landscape.

Edwin told Bloomberg that contracts with foreign suppliers—including Brazil, Angola, Ghana, Equatorial Guinea, and the United States—will expire by year-end. In their place, the refinery will transition to sourcing all its feedstock from within Nigeria.

“We expect some of the long-term contracts will expire. Personally, and as a company, we expect that before the end of the year, we can transition 100 per cent to local crude,” he said.

The Dangote Refinery, currently operating at around 550,000 bpd, sourced 53% of its crude from Nigerian producers and 47% from the U.S. in June 2025. That month marked a turning point as domestic producers began supplying roughly half of the feedstock—a development Edwin attributes to improved relations between the refinery, local traders, and the government.

This shift comes amid ongoing efforts by Africa’s most populous country to reclaim greater value from its crude production. For decades, Nigeria has exported most of its crude, only to re-import it as refined fuel at significantly higher costs. Dangote’s $20 billion refinery, located in Lagos, was built specifically to end this cycle and make Nigeria self-sufficient in fuel production.

Government support appears solid. The Nigerian National Petroleum Company Limited (NNPCL) is already allocating five cargoes—each carrying close to one million barrels of crude—to the refinery in July and the same number again in August.

Aliko Dangote, founder of the refinery, had previously revealed that the facility was relying heavily on U.S. crude despite the government’s “naira-for-crude” supply framework aimed at bolstering domestic supply. That dependence, he said, was driven by initial reluctance from local traders and producers to meet the refinery’s needs, forcing it to turn abroad.

Domestic Oil Production: A Persistent Concern

However, the refinery’s bold shift to 100 percent Nigerian crude faces a critical obstacle: the country’s low and inconsistent crude oil output. Official data shows that Nigeria’s production still hovers around 1.5 million barrels per day—well below its estimated potential of 2.2–2.5 million bpd and a far cry from what is needed to feed a refinery of Dangote’s magnitude while meeting export and debt-servicing commitments.

Years of underinvestment, rampant oil theft, pipeline sabotage, and operational inefficiencies continue to undermine production targets. Although the government has repeatedly pledged to ramp up output, progress has been sluggish. Oil majors operating in the country have either downsized or exited onshore assets, citing insecurity and rising operational risks.

This constrained output presents a real risk to Dangote Refinery’s plan. Nigeria’s oil is already entangled in forward sales agreements, where future oil deliveries have been pledged in exchange for loans and other financial arrangements. These deals significantly reduce the volume of unencumbered crude available for local use, including refinery feedstock.

Industry experts caution that unless Nigeria can lift its oil output significantly in the coming months, Dangote’s plans could face bottlenecks.

From Net Importer to Exporter

Although it has had to contend with early hurdles, the refinery’s gradual ramp-up has already begun to reshape Nigeria’s fuel economy. By the second quarter of 2025, Nigeria emerged as a net exporter of petroleum products for the first time in decades—though that milestone has not come without logistical and structural challenges.

One of the biggest of those has been the inability of local producers to meet the refinery’s initial demand. In the months following the plant’s January commissioning, the Dangote team was forced to import large volumes of foreign crude to keep operations running. A significant portion came from U.S. shale producers, known for their predictable supply and favorable contract terms.

But Edwin now says those days are numbered, with a surge in local deliveries expected in the coming months as more Nigerian oil traders wrap up existing foreign supply obligations.

But the success of the plan also hinges on the stability of government policies and the reliability of local producers to meet the quality and volume standards the Dangote plant requires. Any significant disruption in Nigeria’s oil-producing regions—particularly the Niger Delta—could strain operations.

Moreover, previous refinery projects in Nigeria have stumbled due to similar challenges. What sets Dangote apart is the sheer scale of the investment, the private-sector efficiency driving it, and growing cooperation with state-owned entities like NNPCL.

Trump Courts West African Leaders With Trade Deals, Not Aid — After Scrapping USAID

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President Donald Trump on Wednesday hosted the leaders of five West African nations at the White House, promising a new era of economic partnership based on trade, not charity.

The meeting marked a symbolic turning point in U.S.-Africa relations—coming just months after the Trump administration shuttered the U.S. Agency for International Development (USAID), accusing it of waste, regime meddling, and links to foreign destabilization.

The shift also comes as key African voices, including WTO Director-General Ngozi Okonjo-Iweala and African Development Bank President Akinwumi Adesina, have urged the continent to end its reliance on foreign aid and forge a path defined by investment and trade.

“We have closed the USAID group to eliminate waste, fraud and abuse,” Trump said Wednesday. “And we’re working tirelessly to forge new economic opportunities involving both the United States and many African nations.”

The five invited nations—Liberia, Senegal, Mauritania, Gabon, and Guinea-Bissau—represent only a fraction of U.S.-Africa trade volume, but carry outsized geopolitical importance. Some sit atop critical minerals needed for U.S. supply chains; others are strategic transit routes in the West African subregion. All have suffered setbacks from recent U.S. aid cuts and shifting global alliances.

End of USAID and What It Signifies

Earlier this year, the Trump administration disbanded USAID, ending nearly six decades of U.S.-led development assistance abroad. While some hailed the move as overdue reform, it also drew fire from critics and rights groups who warned that cutting health and food programs in fragile states could lead to “millions of preventable deaths.”

Trump and his allies, however, justified the move with damning claims: that USAID had long served as a covert political arm for regime change operations and influence campaigns abroad—particularly under Democratic administrations. According to sources close to the administration, some U.S. intelligence officials alleged the agency had funded civil society groups later implicated in political unrest, while also channeling money to entities linked to extremist financing in conflict zones.

Praise for Peace, Pitch for Resources

In their speeches, the West African presidents responded with flattery and opportunism. Each leader praised Trump for helping broker a recent ceasefire between Rwanda and the Democratic Republic of Congo, which the U.S. hopes will unlock access to rare minerals in eastern Congo—a region known for cobalt, gold, and tantalum.

Mauritanian President Mohamed Ould Ghazouani listed his country’s mineral bounty, including rare earths and uranium, while signaling openness to U.S. investment.

“We have lithium, manganese, the kind of resources needed for the energy transition,” he said. “And we are ready to do business.”

Liberian President Joseph Boakai, whose country has historically been the most aid-dependent in Africa, expressed “optimism” about the new partnership model. Liberia once relied on U.S. assistance equal to 2.6% of its gross national income—more than any other country in the world, according to the Center for Global Development.

By placing trade at the center of U.S.-Africa ties, Trump appears to be echoing calls for Africa to quit depending on aid — though critics warn his approach is more transactional than transformational.

A Calculated Move Amid Tariff Diplomacy and Travel Bans

Wednesday’s meeting also took place against the backdrop of escalating U.S. tariff diplomacy. The Trump administration is preparing to enforce higher trade tariffs against several developing nations starting August 1. Although none of the five West African nations present at the summit are currently listed among those targeted, analysts see their inclusion at the White House as a calculated attempt to court allies rich in resources and willing to play ball.

Notably, the same countries—Gabon, Senegal, Liberia, and Mauritania—are among those reportedly being considered for inclusion in an expanded travel ban.

Trump made clear that he sees trade not just as commerce, but as leverage. “You guys are going to fight, we’re not going to trade,” he told the African leaders. “And we seem to be quite successful in doing that.”

His comments drew polite silence from the guests, but one could sense the recalibration of relations underfoot.

The Trump administration argues that aid, as practiced before, undermined local agency and enabled corruption.

“We are likely to see a trend where African countries will seek to leverage resources such as critical minerals, or infrastructure such as ports, to attract US commercial entities in order to maintain favorable relations with the current US administration,” said Beverly Ochieng, an analyst at Control Risks, a security consulting firm.

“Each of the African leaders sought to leverage natural resources in exchange for US financial and security investments, and appeared to view the U.S. intervention in the Democratic Republic of Congo as a model to further cooperation,” Ochieng added.

Whether this ushers in a new model of African empowerment or merely shifts the terms of dependency is a debate just beginning to unfold.

Microsoft Reveals $500m in AI Savings, Following Layoffs, Fueling Debate Over Automation’s Human Cost

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Microsoft has quietly revealed that artificial intelligence tools have saved the company over $500 million in its call centers alone over the past year, reinforcing the growing role of automation in corporate efficiency.

The internal admission, disclosed by Chief Commercial Officer Judson Althoff during a private presentation and first reported by Bloomberg, shows that AI is not just transforming productivity—it’s now playing a critical role in reshaping Microsoft’s workforce and cost structure.

The revelation comes just one week after Microsoft laid off more than 9,000 workers in its third major round of job cuts this year, bringing the total number of layoffs across the company in 2025 to nearly 15,000. These layoffs cut across departments, including Xbox, sales, customer service, and software engineering.

Microsoft’s announcement—celebrating efficiency gains from AI tools like Copilot, which now generate more than 35% of all new code—follows its revenue moment. The company reported $26 billion in profit and $70 billion in revenue in the most recent quarter. Its market capitalization surged to $3.74 trillion, displacing Apple and sitting just behind Nvidia, whose AI chips power Microsoft’s AI infrastructure.

Layoffs Amid Booming AI Profits

To many laid-off workers, the juxtaposition between record profitability and job loss stings, and the internal remarks have stirred resentment within the company.

While Microsoft hasn’t publicly attributed the latest layoffs directly to AI replacement, internal actions suggest a reshuffling of priorities that favor automation over manpower. The company has indicated that its call centers now rely heavily on AI to manage routine customer service functions, cutting down on the need for human agents. Althoff said AI support has enabled Microsoft to better serve smaller customers while keeping human staff focused on high-value clients.

At the same time, engineering teams are leaning more heavily on generative tools to accelerate software development. Copilot, Microsoft’s AI coding assistant, is contributing more than a third of the company’s production code, shrinking development timeframes and potentially reducing the need for large engineering teams.

Microsoft is also replacing some of the laid-off workers with more technically specialized roles. According to Business Insider, the company is prioritizing the hiring of “solution engineers” with strong AI and product knowledge to help push its enterprise tools like Copilot.

The tension between Microsoft’s AI-driven gains and its human cost has been further amplified by a controversial, now-deleted LinkedIn post from Matt Turnbull, a producer at Xbox Game Studios. In the post, Turnbull suggested that employees affected by the layoffs could turn to AI tools like ChatGPT and Copilot to help manage the emotional and cognitive load that comes with losing a job.

The post drew immediate backlash, with critics calling it “tone-deaf” and out of touch with the real pain of unemployment. It was quickly deleted, but the damage had been done, casting a shadow over Microsoft’s internal messaging and highlighting the emotional toll of AI-led restructuring.

AI as the New Corporate Workhorse

Microsoft’s embrace of AI is part of a broader industry shift. The company plans to invest $80 billion in AI infrastructure throughout 2025, focusing heavily on data centers, high-performance computing, and the continued rollout of AI-powered productivity tools across its ecosystem. Internally, executives have described this pivot as a redefinition of the company’s mission around “frontier AI.”

Insiders believe the $500 million in savings from AI is just the beginning. Microsoft expects similar efficiencies across other divisions in the coming years. Althoff emphasized that these gains are not just about saving money but also about enabling scale, noting that AI tools help Microsoft better serve a broader base of customers without proportional increases in staffing.

However, critics argue that the company’s gains are coming at the expense of its workforce. Many of the 15,000 jobs lost this year were in functions that AI is now beginning to replace—customer service, product marketing, and low-to-mid-tier software engineering. That’s leading to growing concern over what kinds of roles will survive in a corporate world increasingly defined by automation.

The layoffs and internal restructuring are occurring as Microsoft races to stay ahead in the AI arms race. In addition to deepening its investment in OpenAI, the company is pursuing AI dominance on multiple fronts—from Azure-based Copilot products to partnerships with AI chipmakers and a growing portfolio of AI-powered productivity and infrastructure services.

It is believed that Microsoft’s goal is to become the premier platform for enterprise AI across industries. The company is already one of the largest consumers of Nvidia’s AI chips and continues to funnel billions into expanding its AI datacenters around the globe.