Tether Gold Market Cap Hits $819.1M Amid 27% Gold Price Surge

Tether, a prominent stablecoin issuer, has released its first official attestation for its gold-backed stablecoin, Tether Gold (XAUt), for the first quarter of 2025. The attestation reveals that XAUt has reached a significant milestone, with a market capitalization of $817 million as of April 28, 2025. The company's report, under El Salvador’s new regulatory framework, confirms that each XAUt token is backed 1:1 by physical gold, with over 7.7 tons (246,523.33 ounces) of LBMA-certified gold stored in a Swiss vault.

Tether emphasizes strict controls and periodic audits to maintain trust in the backing of the token. CEO Paolo Ardoino highlighted that XAUt provides a digital gold opportunity to the hundreds of millions of users already utilizing USDt. Ardoino noted that as global instability rises and central banks stockpile gold, XAUt offers a simple and alternative way for regular users to own tokenized gold digitally.

The surge in global gold demand supports the growth of Tether Gold. Central banks, particularly those in the BRICS nations, accumulated over 1,044 metric tons of gold in 2024. Gold prices have risen sharply, gaining about 27% in 2025 and currently trading at around $3,322.39 per ounce as of April 29, 2025. This price increase is more than double the price since November 2022.

Tether Gold (XAUt) is priced at $3,316.99, indicating a 1.06% increase over the past 24 hours. The market capitalization stands at around $819.1 million, also up by 1.07% in 24-hour trading volume. This trend shows steady activity as interest in the gold-backed stablecoin asset grows amid rising gold prices and economic uncertainty.

Investors are increasingly turning to physical assets like gold as a hedge against market uncertainty, driven by geopolitical tensions and inflation fears. Tether Gold, fully backed by physical reserves and regulated, offers an alternative to “paper gold” products, appealing to users seeking secure and alternative investments. Tether co-founder Reeve Collins revealed that USD-backed stablecoins currently dominate the sector, but other currencies and asset-backed stablecoins are beginning to challenge that dominance.

Collins highlighted that users will soon have a diverse range of stablecoin options backed by a broad spectrum of tokenized assets. He emphasized the momentum toward mainstream stablecoin acceptance and pointed to the launch of the World Liberty Financial (WLFI) stablecoin, backed by Trump. This stablecoin was launched on BNB Chain and Ethereum in March, indicating a major endorsement of stablecoin technology at the highest political levels.