Tether Gold's 7.66-Ton Gold Reserves Surpass $814M as 27% Price Surge Drives Demand for Tangible-Asset Tethered Stablecoins

Tether Ltd. announced that its gold-backed stablecoin, Tether Gold (XAUT), has reached a total of 7.66 metric tons in gold reserves as of the second quarter of 2025. This marks the second official attestation of the token, which was launched in 2020. The company confirmed that 246,524 XAUT tokens are in circulation, each pegged to the price of one troy ounce of London Good Delivery gold. The stablecoin’s market capitalization surpassed $814 million by the close of Q2 2025, reflecting growing demand for assets tied to tangible value in an uncertain macroeconomic environment [1].

The expansion of XAUT’s gold reserves aligns with a broader trend of increased investor interest in gold-backed stablecoins. Tether noted that the price of gold has risen by 27% since the beginning of 2025, reaching $3,354 per troy ounce at the time of reporting. This upward trajectory, coupled with rising inflation and regulatory scrutiny of fiat-backed stablecoins like USDT and USDC, has driven demand for alternatives that combine the liquidity of digital assets with the intrinsic value of precious metals. XAUT is currently available on exchanges such as Kraken, KuCoin, and Bitfinex, with holders able to redeem tokens for physical gold stored in Swiss vaults [1].

Tether has also generated $617 million in fair market value from XAUT sales, with an unrealized profit of $197 million reported as of June 2025. The company emphasized transparency, with regular audits of its gold reserves conducted in London. These audits, along with third-party verification, aim to address market skepticism and align with industry trends toward accountability in stablecoin issuance. Analysts highlight that gold-backed stablecoins could serve as a hedge against fiat currency devaluation, particularly as central bank policies remain unpredictable [2].

Looking ahead, Tether is preparing to enter the U.S. market, with CEO Paolo Ardoino stating that preparations are “in full swing.” The company plans to comply with the recently enacted GENIUS Act by seeking recognition as a foreign issuer of stablecoins and securing an audit of its reserves from one of the Big Four accounting firms. This move underscores the regulatory challenges facing commodity-backed stablecoins, as policymakers seek to define frameworks for digital assets tied to tangible assets [3].

Despite the potential of XAUT, challenges remain. Logistical complexities in gold storage and verification, coupled with evolving regulatory standards, could impact scalability. Tether’s ability to maintain transparency while expanding operations will be critical to sustaining momentum. As institutional and retail investors continue exploring alternatives to traditional stablecoins, the role of gold-backed tokens in the crypto landscape is likely to grow, provided regulatory hurdles are addressed [3].

Source: [1] [Tether Gold Sees Continued Growth with Over 7.6 Tons of Gold-Backed Stablecoins][https://coinpaper.com/10199/tether-gold-sees-continued-growth-with-over-7-6-tons-of-gold-backed-stablecoins]

[2] [Tether Ltd. – Tether Gold Update][https://www.tether.to/whitepaper]

[3] [CryptoSlate – Gold-Backed Stablecoins Gain Momentum][https://cryptoslate.com/gold-backed-stablecoins]

[4] [CoinDesk – Regulatory Challenges for Commodity-Backed Stablecoins][https://www.coindesk.com/regulatory-challenges]