Tether Gold Adds 7.66 Tons to Reserves as Institutional Demand for Gold Surges

Tether Gold (XAU₮) has expanded its physical gold reserves, adding 7.66 tons (246,524.38 ounces) to its tokenized asset holdings in the second quarter of 2025. This update, announced by Tether in a July 22 press release, elevates the total backing for the gold-backed stablecoin to a landmark level, solidifying its position as a leading tokenized alternative to traditional gold investments. The reserves, stored in Switzerland under London Good Delivery standards, now underpin 246,524.330 XAU₮ tokens in circulation, each representing one troy ounce of gold [3].

The expansion aligns with a surge in institutional and retail demand for gold as a hedge against fiat currency volatility and economic uncertainty. Central banks collectively acquired over 1,040 metric tons of gold in 2024, a trend that has persisted into 2025, underscoring the metal’s enduring appeal as a strategic reserve asset [2]. Tether’s CEO, Paolo Ardoino, emphasized the growing relevance of XAU₮ in bridging traditional asset stability with blockchain efficiency, noting that the token allows investors to “seamlessly hold and transact gold-backed value without compromising utility, security, or compliance” [3].

XAU₮’s structure, which maintains a 1:1 backing by physical gold, provides transparency and investor assurance. As of June 2025, with gold trading at $3,303.14 per troy ounce, the market cap of Tether Gold reached $814.3 million. The 186,879,510 tokens in circulation are supported by $617.3 million in gold reserves, with an additional 59,644,820 tokens backed by $197 million in physical reserves [1]. This reserve model, governed by El Salvador’s Digital Asset Issuance Law, ensures compliance with international standards for asset-backed tokens.

Analysts view the reserve increase as a strategic response to evolving investor preferences. By maintaining a physical gold backing equivalent to approximately 530 million troy ounces (assuming a 2025 market price of $2,200 per troy ounce), Tether reinforces XAU₮’s credibility in a market increasingly skeptical of uncollateralized digital assets. The firm’s commitment to Swiss custodial standards further enhances confidence, as the jurisdiction is renowned for its rigorous gold storage protocols [3].

The timing of the announcement coincides with Tether’s broader financial strategy. In July 2025, the company disclosed a $13.7 billion investment in 120 companies, leveraging profits from 2024. This diversification underscores Tether’s ability to scale operations while preserving reserve integrity, a critical factor in retaining investor trust [3].

As central banks continue to prioritize gold, XAU₮’s growth highlights the token’s role in modern finance. By digitizing gold’s intrinsic value, Tether addresses limitations in physical storage and transaction speed while adhering to regulatory frameworks. The 7.66-ton addition not only validates XAU₮’s utility but also signals the maturation of tokenized assets as integral components of global investment strategies.

Source:

[1] [Tether Gold Expands With 7.66 Tons Added To XAU₮ Reserves in Q2 2025] [https://blockchainreporter.net/tether-gold-expands-with-7-66-tons-added-to-xau-reserves-in-q2-2025/]

[2] [Tether Gold Grows with More Than 7.66 Tons of Gold Backing XAU₮ as of Q2 2025, Confirming Continued Strength in Tokenized Gold] [https://tether.io/news/tether-gold-grows-with-more-than-7-66-tons-of-gold-backing-xaut-as-of-q2-2025-confirming-continued-strength-in-tokenized-gold/]

[3] [Tether Gold Expands Reserves to 7.66 Ton as XAU₮ Demand Soars] [https://fxdailyreport.com/tether-gold-expands-reserves-to-7-66-ton-as-xau%E2%82%AE-demand-soars/]