Tether Gold Surges 27% on Gold Price Hike Hits $814M Market Cap

Tether disclosed that approximately 246,524 XAUT tokens were in circulation as of June 30, 2025, with a combined market capitalization surpassing $814 million. The stablecoin, which is fully collateralized by 7.66 metric tons of London Good Delivery gold stored in Swiss vaults, reflects a 7.7 metric ton reserve in the prior quarter [1]. The tokens enable investors to gain exposure to gold without physical ownership, with holders able to redeem them for physical bullion. Tether reported $617 million in fair market value from XAUT sales, leaving an unrealized profit of $197 million by quarter-end, though the methodology for this figure remains unspecified [1].

The stablecoin’s growth is attributed to a 27% surge in gold prices since January 2025, with the precious metal trading at $3,354 per troy ounce as of June [1]. This trend aligns with broader investor demand for tangible asset-backed digital currencies, particularly amid macroeconomic uncertainties. Tether CEO Paolo Ardoino highlighted preparations for U.S. market entry, including compliance with the GENIUS Act and an audit by one of the Big Four accounting firms [1]. These steps aim to address regulatory scrutiny surrounding stablecoin reserve transparency, a critical factor for institutional adoption.

Analysts note that the 7.6-ton threshold underscores institutional and retail confidence in gold-backed stablecoins as a hedging tool. The hybrid model—combining gold’s stability with blockchain efficiency—appeals to investors seeking diversified crypto portfolios while maintaining liquidity. Periodic audits of reserves, a practice Tether has emphasized, further bolster transparency in an industry often criticized for opacity [1].

However, scalability challenges persist. Unlike fiat-pegged stablecoins, gold-backed alternatives face logistical constraints in storage and supply chain management. Geopolitical risks, such as regulatory shifts in gold-mining jurisdictions, could also impact operations. Additionally, environmental concerns around gold mining may deter ESG-focused investors, though Tether has partnered with refineries and vault custodians to ensure reserve authenticity [1].

The rise of XAUT highlights evolving use cases for stablecoins beyond transactions. By enabling cross-border payments and DeFi collateral, Tether aims to integrate its token into broader financial systems. This aligns with U.S. Treasury guidelines promoting stablecoin stability, potentially positioning XAUT to capture market share as regulatory frameworks adapt [1].

Long-term success will depend on maintaining reserve integrity while scaling operations. Tether’s infrastructure in stablecoin issuance provides a foundation, but competition from emerging gold-backed tokens could intensify. The company’s strategy to enter the U.S. market, coupled with gold’s enduring role as a store of value, suggests XAUT could solidify its position in the stablecoin ecosystem [1].

Source: [1] [Title: Tether Gold Sees Continued Growth with Over 7.6 Tons of Gold-Backed Stablecoins] [URL: https://coinmarketcap.com/community/articles/6883ab2544d5ab3d177b2767/]