Tether Gold Reserves Top 7.66 Tons As Cross-Chain Expansion Gains Momentum

Tether Gold (XAU₮), the gold-backed stablecoin issued by Tether, has surpassed 7.66 tons of physical gold reserves in Swiss vaults, backed by 250,000 tokens in circulation as of Q2 2025 [1]. The asset, pegged to a troy ounce of London Good Delivery gold, allows investors to redeem tokens for physical metal while enabling on-chain trading on platforms like Kraken, KuCoin, and Bitfinex. With a market cap exceeding $830 million, XAU₮ positions itself as a "functional, transferable reserve asset," offering flexibility in an era of macroeconomic uncertainty [1].

Tether’s expansion into digital gold follows a broader strategy to enhance cross-chain interoperability. In June 2025, the firm partnered with the TON Foundation to launch XAUt0, an omnichain version of its gold-backed stablecoin, leveraging LayerZero’s OFT standard to enable seamless transfers across blockchains without wrapping or middlechain dependencies. This mirrors the deployment of USDT0, the cross-chain iteration of Tether’s dollar-pegged stablecoin [1]. The move aims to integrate XAUt0 into decentralized finance (DeFi) applications on The Open Network (TON), a blockchain initially developed by Telegram but now operating independently.

The TON ecosystem has seen rapid growth since its separation from Telegram, driven by regulatory challenges that necessitated its independence. XAUt0’s deployment on TON follows the earlier rollout of USDt on the network, expanding stablecoin options as demand for tokenized gold rises. Tether’s CEO, Paolo Ardoino, emphasized that securing a full audit from a Big Four accounting firm remains a priority, signaling efforts to strengthen institutional trust. This aligns with the firm’s broader ambition to enter the U.S. market following the signing of the GENIUS Act, a crypto-friendly legislative package under the Trump administration [1].

XAU₮’s growth reflects a shift in investor preferences toward digital commodities as hedges against global debt risks and currency volatility. Tether highlighted that gold-backed assets like XAU₮ are gaining traction in diversified portfolios, competing with traditional gold ETFs and other digital assets. The token’s cross-chain capabilities, particularly through XAUt0, address liquidity challenges and expand access to Telegram’s user base, enhancing peer-to-peer transactions and DeFi utility [1]. Analysts suggest that Tether’s ability to simplify gold ownership via blockchain could accelerate adoption, particularly among investors seeking alternatives to traditional storage and trading methods.

Source: [1] [Tether Gold Supply Tops 7.6 Tons As Investors Look For...] https://financefeeds.com/tether-gold-supply-tops-7-6-tons-as-investors-look-for-alternatives/