Tether, a prominent stablecoin provider, recently released its initial Q1 2025 confirmation report concerning Tether Gold (XAUT). The report disclosed that over 7.7 tons of physical gold supported its tokenized gold offering.
This development comes in the midst of a surging interest in gold as a safeguard against inflation, fueled by escalating geopolitical uncertainties.
The disclosure of Tether Gold Surpassing 7.7 Tons in Gold Reserves was made on April 28, unveiling that as of March 31, there were 246,524.33 XAUT tokens secured by gold in circulation. Each token corresponds to one troy ounce of physical gold safely stored in Swiss vaults, totaling over 7.7 tons of gold.
Tether's CEO, Paolo Ardoino, highlighted that XAUT provides users with the opportunity to access the security of physical gold in a digital format, backed entirely by gold reserves and easily transferable. This approach aligns with Tether's commitment to introducing financial instruments that blend traditional assets with blockchain technology to offer maximum efficiency.
Of the 246,524.33 XAUT tokens minted, 180,777.07 have already been sold, amounting to roughly $564.67 million in market value. The remaining 65,747.26 XAUT tokens, valued at around $205.37 million in gold, are available for purchase.
The attestation was supervised under El Salvador's prevailing regulatory framework, where Tether Gold is presently regulated, with the physical gold supporting XAUT provided by the London Bullion Market Association (LBMA).
The rising adoption of XAUT is credited to growing global economic uncertainty, increasing trade war tensions, and the growing demand for assets resistant to inflation.
Tether Gold's perseverance and the robustness of gold as a store of value in times of economic unpredictability were acknowledged by Ardoino. Market trends, such as the 1% year-over-year growth in gold demand in Q4 2024, solidify this sentiment. Central bank net purchases for 2024 totaled 1,044.6 metric tons, 332.9 of which were procured in Q4.
Recent reports of the US Dollar Index (DXY) plummeting to a three-year low resulted in a surge in gold prices to a new all-time high, emphasizing gold's strategic role as a volatility hedge. This trend has spurred increased interest in tokenized gold assets like XAUT, with its market capitalization reaching a record high of $853.7 million according to BeInCrypto data. Tether Gold retains its position as the most substantial tokenized gold offering, as confirmed by CoinGecko data, solidifying its standing within the digital asset sphere.