Why does Jierui collapse despite being gold + 'voucher,' while Tether keeps making more and more profit?

Author: Conflux

In late January, in Shuibei, Shenzhen, a gold platform called “Jie Wo Rui” experienced a collapse.

Tens of thousands of users queued in a mini-program to withdraw funds, even though daily withdrawal limits were set at 500 yuan or 1 gram of gold. Many applications were rejected. Some users had over 900,000 yuan in principal and hundreds of grams of gold in their accounts but couldn’t withdraw a single penny. The platform claimed that assets had not been transferred and was “coordinating a solution,” but the payout plan offered was: return 20% of the principal in one lump sum or 40% in 12 installments over time.

This is a classic scene of a grassroots financial collapse.

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

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

On the surface, Jie Wo Rui and Tether are doing the same thing—building credit with gold. But they are heading toward two completely opposite ends.

40x Leverage Breaks

Jie Wo Rui’s real problem lies in turning gold into a high-leverage betting tool.

In the so-called “pre-settlement trading,” users only need to pay a deposit of a few dozen yuan to lock in the buy or sell price of 1 gram of gold; if the gold price rises, they settle the difference at maturity; if it falls, the platform repurchases at the agreed price.

This is not spot trading but an invisible options position where retail investors oppose the platform. Users profit, and the platform covers the difference; users lose, and the platform takes the margin.

When precious metal prices surge significantly in 2025–2026, many retail investors see floating profits, but the platform lacks verifiable hedging and reserves, and risks pile up on its books.

The higher the gold price rises, the more difficult it becomes to sustain this system. This is the fundamental reason why a run on the platform occurs during the hottest market times.

Opposite Paths of Leading Examples

Similarly, with “gold certificates,” Tether’s issued gold stablecoin Tether Gold (XAUT) employs a completely different financial structure:

• Each 1 XAUT corresponds to 1 ounce of physical gold
• Supply is strictly 1:1 with gold reserves

It is not a leveraged product, not pre-set, and not a betting instrument.

By the end of Q4 2025, XAUT accounted for over half of the entire gold stablecoin market, holding a total of 520,089.350 ounces of physical gold, with a market value exceeding $2.2 billion.

Meanwhile, Tether continues to expand its gold holdings within its overall reserve structure. Currently, its physical gold totals nearly 140 tons, with plans to increase holdings further.

This means it is not supporting a high-leverage trading position with gold but incorporating gold into its balance sheet as a long-term asset within the stablecoin system.

In the context of increasing global geopolitical instability and the frequent weaponization of the US dollar 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” trust fortress for its USDT stablecoin and the entire crypto ecosystem.

Same Gold Price, Two Fates

In early 2026, precious metal prices surged sharply.

For Jie Wo Rui, which relies on centralized credit, opaque funds, and reserves, this is a disaster. But for Tether, it is the exact opposite. Because it holds physical gold—rising gold prices automatically strengthen its balance sheet.

As gold prices soared, Tether’s gold holdings appreciated by over $5 billion, with its gold reserve value exceeding $23.3 billion. Tether even plans to purchase 1 to 2 tons of gold weekly in the coming months and has hired senior traders from HSBC to actively trade and capture arbitrage opportunities.

Both are “gold + certificates,” but one collapses amid a run, and the other grows stronger in a bullish market.

When precious metal prices fluctuate violently, the real test is not “who earns more” but whose structure can better withstand shocks.

Jie Wo Rui’s collapse is a tragedy of traditional financial gray industry. The rise of Tether Gold, however, points to the future direction of gold investment in the digital age.

In today’s increasingly uncertain world, “digital gold bars” with their transparency, verifiability, and resistance to censorship are becoming a highly promising “value fortress” outside the traditional gold and fiat currency systems.

This article is for informational purposes only and does not constitute investment advice. The market carries risks; invest cautiously.

Related reading: The hidden big players behind the surge in gold prices: this crypto institution earning hundreds of millions of dollars annually has accumulated 140 tons of gold.