Tether’s Gold-Backed XAUT Proves Reserves as Investors Flee to Hard Assets

When markets wobble, crypto traders still reach for the digital equivalent of a security blanket—gold. Tether’s XAUT, the controversial stablecoin pegged to physical bullion, just audited and verified its reserves as demand spikes.

Behind the rush: Geopolitical chaos, inflation fears, and that nagging suspicion your fiat isn’t worth the paper it’s printed on. XAUT’s appeal? All the volatility of crypto with the ’stability’ of a 5,000-year-old shiny rock.

One skeptic’s take: ’Nothing says ‘modern finance’ like digitizing the same asset Croesus hoarded in 550 BC.’

Meanwhile, traditional gold markets have outperformed expectations. Analysts from The Kobeissi Letter pointed out that gold prices have outpaced the S&P 500 by over 32% this year — the biggest gap since 1975 — with gold gaining 26.5% while stocks slipped by 6.1%. Central banks have also intensified their gold accumulation, raising global gold reserves to the highest level in 26 years, with China notably doubling its holdings.

Looking ahead, Tether CEO Paolo Ardoino outlined plans to expand XAUT’s availability, especially in emerging markets. Ardoino emphasized that the token aims to offer digital access to physical gold’s security — combining the reliability of traditional assets with blockchain’s speed and accessibility, much like USDT’s role in the stablecoin sector.