Gold-backed stablecoin Tether Gold commonly known as XAUT is witnessing tremendous demand in recent days, taking its market cap to over $800 million and price up by 9.6% (QoQ). So, what’s fueling this demand? In its 1st official attestation published, tether revealed that every token in circulation was fully backed by physical gold. This means as of April 28, 2025, it has more than 7.7 tons of gold, which is equivalent to 246,523.33 troy ounces, backing its tokens.
Amidst the tariff turmoil and global uncertainties, Gold has seen a significant rally, often acting as a hegde in this unpredictable global monetary landscape. So it’s not just central banks across the world stocking up enormous quantities of gold reserves, but also tokenized gold product like XAU₮ that are playing the gold rush.
Paolo Ardoino, CEO of Tether in a social media post said: “While central banks are stacking up hundreds of tons of gold, XAUt is set to become the standard tokenized gold product for the people and institutions”.
He also pointed out that each XAU₮ token is backed 1:1 by one troy ounce of physical gold, which is securely stored in a dedicated vault within world-class facilities in Switzerland. The statement also mentions the purchase of London Bullion Market Association (LBMA) gold bars— the global authority on precious metals—which is subject to stringent controls.
The stablecoin issuer has often been pulled up for its financial reporting practises. Especially related to its USDT stablecoin. Recently El Salvador decided to regulate Tether Gold making it adhere to the growing compliance frameworks in place in the crypto-friendly country.
