Gold Coin AI, Inc.
“Gold is money. Everything else is credit.”
— J.P. Morgan
Historically, gold has been sought after as a “safe haven” compared to other assets like stocks or real estate. Even during economic downturns, gold retains its value and liquidity. In fact, gold often moves inversely to big swings in the stock market, allowing investors to diversify risk.
However, physical gold investment comes with an ongoing risk of theft, so it’s wise to keep gold bars and coins in a protected place, like a bank safe deposit box. Storage and insurance fees add up and detract from returns, and physical transport is cumbersome. Most importantly, physical gold is relatively illiquid.
“Gold still represents the ultimate form of payment in the world.”
— Alan Greenspan (Former Federal Reserve Chairman)
Stablecoins became a disruptive solution. Gold-backed stablecoins modernize gold ownership by offering increased accessibility, liquidity, and utility while retaining the hedge qualities of physical gold. They eliminate storage and security costs and convert those inefficiencies into additional profit. The price of gold per ounce has risen by over $1,500 compared to a year ago — over 158 % growth. Gold prices surged in 2025 amid tariff-driven market pressures, reaching $4,200/oz and are projected toward $4,500 by mid-2026.
However, up until the passage of the GENIUS Act on July 25, 2025, a major problem for all stablecoin investors was the lack of clear regulatory guidelines and the ambiguous legal status of stablecoins. Gold-backed stablecoins were reliant on issuers to hold and manage the physical gold reserves backing their tokens. If an issuer mismanaged reserves, became insolvent, or engaged in fraudulent activity, the coin’s value could be jeopardized — as seen in the de-pegging of TerraUSD. The GENIUS Act fixed these problems.
In essence, the GENIUS Act created a robust and regulated environment for stablecoins in the U.S., fostering greater confidence and wider adoption while addressing financial stability, illicit activity, and consumer protection. The Act imposed strict requirements for stablecoin issuers to comply with the Bank Secrecy Act and implement AML/CFT measures. Concerns about potential failures are addressed by capital and reserve requirements that reduce risk and protect the system. The Act defines permitted issuers — banks and qualified non-bank entities — and requires that stablecoins be fully backed by liquid U.S. assets with regular audits to ensure transparency and stability.
While the GENIUS Act aims to enhance stability and consumer protection, its stricter requirements may challenge existing stablecoins that cannot adapt. Many may exit the U.S. market or cease operations entirely rather than comply. This creates opportunities for new, compliant stablecoins to emerge and capture market share as non-compliant coins exit.
“If you don’t own gold… there is no sensible reason other than you don’t know history or you don’t know the economics of it.”
— Ray Dalio (Founder, Bridgewater Associates)
Dalio views gold as essential for portfolio diversification and as a hedge against monetary debasement. As non-compliant tokens exit and the market seeks fully regulated alternatives, GCAI Coin is positioned to absorb demand for compliant assets with on-chain proof of reserves and fully audited issuers. Our fund is focused on acquiring and holding fully compliant gold-backed stablecoins that are uniquely positioned to capture orphaned market share from exited protocols and to attract users and capital seeking real-asset protection.