$150 Billion of New Money into Gold? Basel III Changes Everything
$150 Billion of New Money into Gold? Basel III Changes Everything
Commodity Culture: 7-28-2025
A recent insightful discussion on Commodity Culture with Jesse Day, featuring Trey Wasser, CEO of Dryden Gold, delved into the transformative forces shaping the gold and digital currency landscapes, alongside exciting updates from Dryden Gold’s exploration efforts.
The conversation revealed a bullish outlook for gold, driven by unprecedented institutional demand and innovative financial integration.
A cornerstone of the discussion was the seismic impact of Basel III regulations. As of July 1st, 2023, these regulations have reclassified gold as a Tier-One asset for U.S. banks, putting it on par with U.S. Treasuries.
This pivotal change is anticipated to unleash a tidal wave of new institutional demand, potentially channeling up to $150 billion into physical gold reserves as banks diversify their balance sheets.
The expected outcome? A significant boost to gold’s liquidity and price stability, solidifying its role as a bedrock financial asset.
Transitioning from traditional finance to the digital frontier, the conversation navigated the implications of the Genius Act. This landmark legislation represents the first major U.S. move to formalize a regulatory framework for digital currencies, particularly stablecoins.
By providing clarity and oversight for the burgeoning $250 billion stablecoin market, the Act strategically supports the digital dollar, aiming to extend the U.S. dollar’s global reach, especially into developing and unbanked regions.
Crucially, the emergence of stablecoins – particularly those backed by U.S. Treasuries and gold – creates a fascinating synergy. These digital assets are effectively becoming new buyers of physical gold, thereby fostering fresh demand and intrinsically weaving together the digital currency and precious metals markets.
A compelling example of this integration is Tether’s recent acquisition of a 51% stake in Elemental Royalties, a move that starkly illustrates the deepening connection between the crypto and gold sectors.
Amidst these macro-level market discussions, Trey Wasser offered a compelling update on Dryden Gold’s exploration progress. The company recently secured a $7 million financing, empowering them to significantly advance their drilling program.
A highlight is the major high-grade gold discovery at their Gold Rock target. This discovery is particularly intriguing due to its geological complexity, featuring multiple stacked gold-bearing structures with no surface expression – a characteristic reminiscent of Ontario’s prolific Red Lake camp.
The Commodity Culture episode painted a vividly bullish picture for gold. The confluence of Basel III’s reclassification of gold as a top-tier asset, the Genius Act’s regulatory framework for stablecoins creating new demand, and Dryden Gold’s impressive high-grade discoveries collectively signal a transformative period for the precious metal.
These developments are not only generating unprecedented institutional demand and fostering synergies between digital finance and physical gold but also highlighting emerging success stories like Dryden Gold in promising gold districts.
For a deeper dive into these pivotal developments, viewers are encouraged to watch the full Commodity Culture video.