Tether Gold's XAUT Surges 1% Year-Over-Year, Backed by 7.7 Tons of Gold
2min read Tether Gold (XAUT) has achieved significant growth, with over 7.7 tons of gold backing its digital asset. This substantial gold reserve positions XAUT as a leading tokenized gold asset amidst market volatility. The recent attestation report from Tether reveals that as of March 31, 246,524.33 XAUT tokens were in circulation, each pegged 1:1 to one troy ounce of physical gold stored in Swiss vaults. This amounts to over 7.7 tons of gold, highlighting the strong demand for digital asset security during times of economic uncertainty.
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Tether’s CEO, Paolo Ardoino, emphasized the company’s commitment to providing users with the ability to access the security of physical gold in a digital form. This approach combines the best of traditional assets with the efficiency of blockchain technology. The report also noted that 180,777.07 of the 246,524.33 XAUT tokens minted have already been sold, with the corresponding gold reserves valued at approximately $564.67 million. The remaining 65,747.26 XAUT tokens are available for sale, backed by gold valued at around $205.37 million. Based on the gold price of $3,123.5 per ounce, the XAUT tokens’ market value was approximately $770.04 million.
The attestation was conducted under the new regulatory framework in El Salvador, where Tether Gold is now regulated. The London Bullion Market Association supplies the physical gold backing XAUT. Tether attributed the surge in XAUT adoption to escalating global economic uncertainty, heightened trade war tensions, and a rising demand for inflation-resistant assets. Ardoino added that Tether Gold continues to demonstrate the strength and resilience of gold as a store of value, especially in times of economic uncertainty.
This growth aligns with broader market trends, where gold demand grew by 1% year-over-year in Q4 2024, setting a new record for the quarter. Central bank net purchases reached 1,044.6 metric tons in 2024, with 332.9 metric tons acquired in Q4 alone. The US Dollar Index dropped to a three-year low, sparking a rally in gold, which reached a new all-time high. This surge highlighted gold’s strategic role as a hedge against volatility, a trend that has also driven increased demand for tokenized gold assets like XAUT. XAUT’s market capitalization reached $853.7 million last week, representing a new record peak. Tether Gold is the largest tokenized gold product, reinforcing its position in the digital asset ecosystem.
As investor sentiment shifts towards safer assets, XAUT’s growth trajectory appears promising. The structural integrity provided by the gold backing resonates with those wary of crypto market fluctuations. The integration of stringent regulatory measures is a key factor that could enhance user trust and adoption of Tether Gold. Tether’s transparent approach, alongside the stability of the underlying asset, positions XAUT favorably in the competitive landscape of digital assets.
Tether Gold has established itself as a significant player in the tokenized gold market, offering a secure alternative for investors seeking the stability of precious metals. With ongoing economic challenges, XAUT’s role as a hedge against inflation and market volatility is likely to foster further growth. The company’s commitment to transparency and regulatory compliance further solidifies its position as a reliable digital asset backed by physical gold.
