- XAUT tokens fully backed by 246,523 oz of physical gold held securely in Swiss vaults.
- Tether Gold hits record price of $3,423 amid global inflation and economic tensions.
- Central banks bought 1,044 tons of gold in 2024; Tether Gold demand surges in response.
Stablecoin issuer Tether has stated that its Tether Gold (XAUT) token now holds approximately 7.7 tons of physical reserves. XAUT, launched in 2020, has received its first official attestation from the company. The gold reserves, consisting of 246,523 ounces remain safely stored in Switzerland. The market capitalization of XAUT reached $770 million at the end of the first quarter of 2025.
The attestation follows Tether’s decision to operate under El Salvador’s new digital asset regulations. The stablecoin issuer backs XAUT tokens through their compliance with international standards which represents one troy ounce of LBMA-certified gold.
Rising Demand for Gold-Backed Digital Assets
Gold demand worldwide surges, coinciding with the release of the XAUT attestation. Geopolitical tensions, inflation fears and financial market instability caused investors to search for safer assets. According to the World Gold Council, global central banks purchased over 1,044 metric tons of gold in 2024, with BRICS nations leading these acquisitions. The growing market trend demonstrates that gold is essential to protect against economic uncertainty.
Tether pointed out that XAUT offers a digital alternative to traditional gold investment. Through blockchain technology, investors can access gold investments without delay and with easier access to gold while maintaining trust through verified reserves and periodic audits. Paolo Ardoino, CEO of Tether, explained that XAUT bridges conventional gold storage methods with advanced digital financial products suitable for individuals and institutions.
Tether Gold’s Position in the Growing Tokenized Gold Market
Market volatility has driven investors to embrace tokenized gold products as a financial asset solution. The company’s recent report shows that Tether Gold holds the top position in market capitalization among tokenized gold products. The token achieved its peak value of $3,423 on April 21, 2025, as gold’s rising valuation rose in worldwide markets. The market value of gold stands at approximately $3,343 per ounce, experiencing a 27% increase year-to-date.
Through XAUT, Tether stands apart from other offerings by maintaining a strict one-to-one physical gold backing. The company implements gold bar verification to maintain transparency while following thorough auditing procedures. XAUT distinguishes itself from derivative products or “paper gold” systems by offering physical ownership of stored gold in world-class Swiss vaults.
XAUT’s operation under El Salvador’s digital asset regulations adds further legal certainty to the product. Tether positions this stablecoin as a reliable tool for those in need of value protection due to the mounting pressure on fiat currencies and changing economic circumstances.