Tether Gold Tokens Hit 250,000 in Circulation Backed by 7.66 Tons of Swiss-Stored Gold

Tether has confirmed that its gold-backed stablecoin, Tether Gold (XAU₮), now has approximately 250,000 tokens in circulation, fully supported by 7.66 tons of physical gold as of Q2 2025 [1]. Each XAU₮ token represents one troy ounce of London Good Delivery gold, stored in Swiss vaults and redeemable for physical bullion. The company emphasized that the product is designed to offer users a “functional, transferable reserve asset” amid growing macroeconomic uncertainties and fiat volatility [1]. The stablecoin, launched in January 2020, operates on blockchain platforms including Kraken, KuCoin, and Bitfinex, with a market capitalization exceeding $830 million [1]. This positions it as a niche but significant player in the broader stablecoin market, which is dominated by Tether’s USD-pegged USDT stablecoin. The latter holds a total market capitalization of $162 billion, as reported by The Block [1].

Tether’s CEO, Paolo Ardoino, has outlined strategic priorities including entering U.S. markets following the enactment of the GENIUS Act under President Donald Trump’s administration. Additionally, Ardoino stated that securing a full audit from one of the Big Four accounting firms (Deloitte, EY, PwC, or KPMG) remains a “top priority” for the company [1]. These steps suggest Tether is seeking to enhance regulatory compliance and transparency, particularly as the firm navigates a complex legal landscape involving its USD-pegged stablecoin. The expansion of Tether Gold reflects broader trends in the digital asset space, where investors increasingly seek alternatives to traditional fiat currencies and equities. Tether’s statement underscores the role of gold-backed tokens as a “safe haven” asset, leveraging the historical appeal of gold while integrating the efficiency of blockchain technology [1]. The company’s timing aligns with global discussions on the future of money, as central banks and financial institutions explore digital currencies and re-evaluate monetary policy frameworks.

Critically, the success of XAU₮ depends on its ability to attract institutional and retail demand for a non-fiat-backed stablecoin. While the product’s direct linkage to physical gold offers a tangible asset for holders, its adoption will likely hinge on market confidence in Tether’s reserves and operational practices. The firm’s recent audit plans and public statements signal a focus on addressing these concerns, though challenges remain in maintaining trust after years of scrutiny over its USD reserves. As of now, Tether Gold’s market share is relatively small compared to its USD-pegged counterpart. However, its unique value proposition—combining gold’s intrinsic value with blockchain’s accessibility—positions it as a potential tool for diversification in volatile markets. The firm’s emphasis on XAU₮ as a “hedge” against economic uncertainties resonates with investors navigating a landscape marked by inflation, geopolitical risks, and monetary policy shifts [1].

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[1] [Tether Gold Tokens Backed by 7.66 Tons of Gold in Q2 2025](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)