Tether Gold Tokens Backed by 7.66 Tons of Gold as Macroeconomic Uncertainties Drive Demand

Tether has confirmed that approximately 250,000 Tether Gold (XAU₮) tokens are currently in circulation, each representing one troy ounce of physical gold, totaling 7.66 tons as of Q2 2025 [1]. The stablecoin, launched in January 2020, is designed to mirror the value of London Good Delivery gold bars and is backed by reserves stored in Swiss vaults. Tether emphasized in a Thursday announcement that XAU₮ serves as a digital alternative for investors seeking exposure to gold, with the ability to redeem tokens for physical bullion. The asset has a market capitalization exceeding $830 million and is traded on platforms including Kraken, KuCoin, and Bitfinex.

The company highlighted the growing relevance of gold-backed digital assets amid macroeconomic uncertainties, fiat volatility, and rising global debt. “Gold-backed digital assets, such as XAU₮, are increasingly viewed as essential portfolio hedges,” Tether stated, underscoring the token’s dual role as a safe-haven investment and a transferable reserve asset. This aligns with broader trends in the crypto market, where stablecoins are gaining traction as tools to hedge against inflation and diversify risk.

XAU₮ operates under a structure similar to Tether’s flagship USD-pegged stablecoin, USDT, which holds a $162 billion market capitalization [2]. Tether CEO Paolo Ardoino has outlined plans to expand into U.S. markets following the enactment of the GENIUS Act, which aims to streamline stablecoin regulation. The company has also prioritized obtaining a full audit from one of the Big Four accounting firms—Deloitte, EY, PwC, or KPMG—to bolster transparency and regulatory compliance.

The XAU₮ token addresses liquidity challenges in physical gold markets while leveraging blockchain’s efficiency for transactions. Tether’s Swiss vaults, though described as secure and compliant with international standards, have not disclosed specific custodians or additional safeguards. Analysts note that institutional adoption and regulatory clarity will be critical for the growth of tokenized precious metals. Independent verification of Tether’s gold reserves remains a key factor in building investor confidence, with the company committing to regular reporting on its holdings.

Tether’s strategy reflects a broader shift in finance toward hybrid models combining traditional assets with digital innovation. However, challenges persist, including the need for robust third-party audits and addressing concerns about the physical backing of tokenized assets. As the crypto market evolves, XAU₮’s role as a hedge against macroeconomic risks will depend on maintaining transparency and meeting institutional demand for reliable collateralized assets.

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[1] [250,000 Tether Gold Tokens in Circulation Are Backed by 7.66 Tons of Gold, Tether Says](https://www.theblock.co/post/364232/250000-tether-gold-tokens-in-circulation-are-backed-by-7-66-tons-of-gold-tether-says?utm_medium=rss&utm_source=markets.xml)

[2] [Tether’s USDT Market Cap Data](https://www.theblock.co/post/364232/250000-tether-gold-tokens-in-circulation-are-backed-by-7-66-tons-of-gold-tether-says?utm_medium=rss&utm_source=markets.xml)