Tether Gold Backed by 7.7 Tons of Physical Gold, Demand Surges 1%

Tether, a prominent stablecoin issuer, has released its first Q1 2025 attestation report on Tether Gold (XAUT), revealing that over 7.7 tons of physical gold back its tokenized gold product. This disclosure comes at a time when demand for gold as an inflation hedge is surging, driven by escalating geopolitical tensions.

The report, shared on April 28, highlighted that as of March 31, 246,524.33 gold-secure XAUT tokens were in circulation. Each token is pegged 1:1 to one troy ounce of physical gold stored in Swiss vaults, amounting to 246,524.33 ounces or over 7.7 tons of gold. Tether’s CEO, Paolo Ardoino, remarked that with XAUT, users can access the security of physical gold in a digital form, which is secure, easily transferable, and backed 1:1 by fully held gold reserves. This initiative is part of Tether’s broader commitment to building financial tools that combine traditional assets with the efficiency of blockchain technology.

Furthermore, 180,777.07 of the 246,524.33 XAUT tokens minted have already been sold. The corresponding gold reserves had a market value of approximately $564.67 million. The remaining 65,747.26 XAUT tokens are available for sale, backed by gold valued at around $205.37 million. Based on the gold price of $3,123.5 per ounce, the XAUT tokens’ market value was approximately $770.04 million.

The attestation was conducted under the new regulatory framework in El Salvador, where Tether Gold is now regulated. The London Bullion Market Association supplies the physical gold backing XAUT. Tether attributed the surge in XAUT adoption to escalating global economic uncertainty, heightened trade war tensions, and a rising demand for inflation-resistant assets. Ardoino added that Tether Gold continues to demonstrate the strength and resilience of gold as a store of value, especially in times of economic uncertainty.

The company’s statement aligns with broader market trends. According to the World Gold Council, gold demand grew by 1% year-over-year in Q4 2024, setting a new record for the quarter. In addition, central bank net purchases reached 1,044.6 metric tons in 2024, with 332.9 metric tons acquired in Q4 alone. This surge highlighted gold’s strategic role as a hedge against volatility, a trend that has also driven increased demand for tokenized gold assets like XAUT. CoinGecko data shows that Tether Gold is the largest tokenized gold product, reinforcing its position in the digital asset ecosystem.