As someone who has been in finance/capital markets for over 20 years the following cannot be understated enough especially in the context of history:

On July 1st, 2025, Basel III banking regulations officially reclassified physical gold as a Tier 1 asset, specifically a high-quality liquid asset (HQLA). This means that U.S. banks can now count physical gold at 100% of its market value towards their core capital reserves. Previously, gold was considered a Tier 3 asset, requiring banks to discount its value.

Many times in markets the catalyst for great change is when the RULES change.

#gold #bitcoin #markets #banks

Reply to this note

Please Login to reply.

Discussion

So hiw would something even better than Gold, kuchbitcoinkuch, be classified πŸ€”

UHQULA ?

Aka: Ultra High-Quality Ultra Liquid Asset.

Tier 1 assets represent the core capital of a bank and are the primary measure of its financial strength. These assets are intended to absorb losses without requiring a bank to cease its operations.

Common Equity is the highest quality of capital and is the most loss-absorbing.