Tether’s XAUT Token Backed by 7.7 Tons of Gold, Market Cap Hits $770M

Tether’s tokenized gold product, XAUT, has released its first official attestation, revealing that its total backing amounts to 246,523.33 ounces, equivalent to more than 7.7 tons of gold. This significant milestone underscores the growing demand for safe-haven assets amidst global economic uncertainty and geopolitical risks.

Priced at $3,123.57 per token, XAUT has a total market capitalization of $770 million. The token reached an all-time high of $3,423 on April 21, representing a 9.6% increase since the close of the first quarter. Tether describes XAUT as the leading product in the tokenized gold sector, emphasizing its market size, security standards, and regulatory compliance. The attestation is seen as a crucial step in enhancing the project’s transparency and long-term appeal to both institutional and retail investors.

The rising demand for gold has been a key driver for XAUT’s success. Global economic instability, escalating geopolitical risks, and fears of new trade barriers have led investors to seek safer assets. This climate has helped drive XAUT’s market cap to new highs. Gold itself has delivered a standout performance, with prices outpacing the S&P 500 by 32.6% year-to-date, marking the most significant divergence since 1975. Gold prices have rallied 26.5% this year, while the S&P 500 has declined by 6.1%, positioning gold for its second consecutive year of outperforming the stock market.

Central banks worldwide are also boosting their gold holdings, with the precious metal accounting for approximately 18% of global international reserves, the highest level in 26 years. China has been a leading contributor, doubling its gold reserve share to 7.1% since early 2023. This trend further supports gold’s momentum and underscores its role as a safe-haven asset.

Tether CEO Paolo Ardoino revealed that the company plans to expand XAUT’s reach, especially across emerging markets. According to him, “With XAUT, we’re offering users the ability to access the security of physical gold in a digital form—secure, easily transferrable, and backed 1:1 by fully held gold reserves. It’s part of our broader commitment to building financial tools that combine the best of traditional assets with the efficiency of blockchain technology.” This suggests that the company intends for XAUT to serve a similar role to USDT in emerging markets, providing a digital alternative to traditional gold investments.