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Tether’s recent attestation report reveals XAUT’s substantial gold backing, indicating a strong demand for digital asset security amid economic uncertainty.
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As traditional markets fluctuate, the rise of crypto-backed assets like XAUT highlights a shift in investor behavior toward more stable forms of value.
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XAUT’s adherence to El Salvador’s regulatory framework symbolizes a commitment to transparency within the crypto space, according to Tether statements.
Tether Gold (XAUT) boasts over 7.7 tons of physical gold backing, positioning itself as a leading tokenized gold asset amidst market volatility.
Tether Gold Surpasses 7.7 Tons in Gold Reserves
The company shared the report on April 28. It highlighted that as of March 31, 246,524.33 gold secure XAUT tokens were in circulation. Each token is pegged 1:1 to one troy ounce of physical gold stored in Swiss vaults. Thus, this amounts to 246,524.33 ounces or over 7.7 tons of gold.
“With XAUT, we’re offering users the ability to access the security of physical gold in a digital form—secure, easily transferrable, and backed 1:1 by fully held gold reserves. It’s part of our broader commitment to building financial tools that combine the best of traditional assets with the efficiency of blockchain technology,” Tether’s CEO, Paolo Ardoino, remarked.
Furthermore, 180,777.07 of the 246,524.33 XAUT tokens minted have already been sold. The corresponding gold reserves had a market value of approximately $564.67 million.
The remaining 65,747.26 XAUT tokens are available for sale, backed by gold valued at around $205.37 million. Based on the gold price of $3,123.5 per ounce, the XAUT tokens’ market value was approximately $770.04 million.
The attestation was conducted under the new regulatory framework in El Salvador, where Tether Gold is now regulated. The London Bullion Market Association (LBMA) supplies the physical gold backing XAUT.
Meanwhile, Tether attributed the surge in XAUT adoption to escalating global economic uncertainty, heightened trade war tensions, and a rising demand for inflation-resistant assets.
“Tether Gold continues to demonstrate the strength and resilience of gold as a store of value, especially in times of economic uncertainty,” Ardoino added.
The company’s statement aligns with broader market trends. According to the World Gold Council, gold demand grew by 1% year-over-year in Q4 2024, setting a new record for the quarter. In addition, central bank net purchases reached 1,044.6 metric tons in 2024, with 332.9 metric tons acquired in Q4 alone.
In fact, COINOTAG previously reported that the US Dollar Index (DXY) dropped to a three-year low. This currency devaluation sparked a rally in gold, which reached a new all-time high.
This surge highlighted gold’s strategic role as a hedge against volatility, a trend that has also driven increased demand for tokenized gold assets like XAUT. According to COINOTAG data, XAUT’s market capitalization reached $853.7 million last week, representing a new record peak.
Moreover, CoinGecko data shows that Tether Gold is the largest tokenized gold product, reinforcing its position in the digital asset ecosystem.
Future Outlook for Tether Gold
As investor sentiment shifts towards safer assets, XAUT’s growth trajectory appears promising. The structural integrity provided by the gold backing resonates with those wary of crypto market fluctuations.
The integration of stringent regulatory measures is a key factor that could enhance user trust and adoption of Tether Gold. Tether’s transparent approach, alongside the stability of the underlying asset, positions XAUT favorably in the competitive landscape of digital assets.
Conclusion
Tether Gold has established itself as a significant player in the tokenized gold market, offering a secure alternative for investors seeking the stability of precious metals. With ongoing economic challenges, XAUT’s role as a hedge against inflation and market volatility is likely to foster further growth.
