Tether’s XAUT Confirms Gold Reserves as Demand Surges Amid Global Uncertainty

Tether’s tokenized gold product, XAUT, has officially confirmed its reserves, revealing backing of over 246,500 ounces of gold — more than 7.7 tons.

Priced at around $3,123.57 per token, XAUT’s total market cap now stands at $770 million, with prices reaching a record high of $3,423 earlier this month.

The company’s latest attestation marks a major step in its effort to enhance transparency and appeal to both institutional and retail investors. Tether describes XAUT as the leading asset in the tokenized gold sector, citing its market share, compliance, and security standards.

Growing economic uncertainty has fueled rising demand for gold, and XAUT has ridden that wave. Tether noted that during the first quarter of 2025, fears over geopolitical tensions and global trade risks drove investors toward safer assets, boosting XAUT’s growth.

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Meanwhile, traditional gold markets have outperformed expectations. Analysts from The Kobeissi Letter pointed out that gold prices have outpaced the S&P 500 by over 32% this year — the biggest gap since 1975 — with gold gaining 26.5% while stocks slipped by 6.1%. Central banks have also intensified their gold accumulation, raising global gold reserves to the highest level in 26 years, with China notably doubling its holdings.

Looking ahead, Tether CEO Paolo Ardoino outlined plans to expand XAUT’s availability, especially in emerging markets. Ardoino emphasized that the token aims to offer digital access to physical gold’s security — combining the reliability of traditional assets with blockchain’s speed and accessibility, much like USDT’s role in the stablecoin sector.

Alexander Stefanov