Tether’s Gold-Backed XAUT Hits $770M Market Cap After Auditing 7.7-Ton Reserve

Tether just flexed its bullion muscles—verifying a 7.7-ton gold hoard backing its XAUT token as demand surges. The audited stash, worth roughly $500M at current prices, now supports a $770M market cap for the gold-pegged stablecoin.

XAUT’s rise mirrors institutional hunger for crypto-gold hybrids, though skeptics whisper about whether auditors checked for tungsten cores. Meanwhile, traditional gold ETFs bleed billions—because who needs physical bars when you can HODL digitized ounces?

Tether’s move tightens its grip on the ‘stablecoin wars,’ proving even gold isn’t too boomer for crypto’s synthetic asset revolution.

Tether’s XAUT Surpasses $770M, Driven by Demand for Inflation Hedges

XAUT, each representing one ounce of London Bullion market Association (LBMA)-certified gold, continues to hold its position as the highest market-cap tokenized gold product available.

The physical gold is stored in a dedicated vault within world-class facilities in Switzerland, with strict controls governing the acquisition and storage processes.

These measures include rigorous counterparty selection, certificate verification, and periodic gold assays conducted under the supervision of an auditor.

According to Tether, the market capitalization of XAUT now stands at $770 million, with the price per token recorded at $3,123.57 at the end of Q1.

On April 21, 2025, XAUT reached an all-time high of $3,423, marking a 9.6% increase since the quarter’s close.

The company emphasized that while the price of gold remains subject to volatility, the key measure for XAU₮ remains the quantity of inventory held in reserve.

Tether attributes the growth of XAUT to a surge in demand for inflation-resistant assets, driven by rising geopolitical tensions, economic uncertainty, and concerns over new international trade tariffs.

This trend is part of a broader pattern, with global central banks, particularly among BRICS nations, accumulating gold at record rates.

According to the World Gold Council, central banks purchased 1,044.6 metric tons of gold in 2024, reinforcing gold’s strategic role in diversifying away from U.S. dollar dependency.

XAUT issuance is governed by strict procedures, including the use of London Bullion Market Association (LBMA)-certified gold bars, with regular audits and stringent verification standards in place.

Paolo Ardoino, CEO of Tether, commented on the release, stating,

“Tether Gold continues to demonstrate the strength and resilience of gold as a store of value, especially in times of economic uncertainty.“

He further added that “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.”

Tether also acknowledged the enduring familiarity of gold among populations facing economic instability, noting that while Bitcoin may represent the future of digital finance, gold remains a trusted safety reserve for many around the world.

XAUt – Tether Gold stablecoin – first attestation is out

Highlights:
– more than 7.7 tons of physical gold backing 100% of the issued tokens
– gaining important traction in emerging markets
– several new exchange listings in the pipeline
– strong compliance
– XAUt physical… https://t.co/KDrN1KpPgx

Tether Gold Advances Under Strengthened Compliance and Regulatory Push

The release of Tether’s first Q1 2025 attestation for XAUT follows a series of strategic developments for the gold-backed token.

Recently regulated in El Salvador, Tether Gold has entered a new era under a more robust compliance framework, offering a blockchain-based alternative for secure physical gold ownership.

Tether stated that while XAUT’s value remains subject to market volatility, the focus is firmly on the quantity of gold reserves, now totaling 7.7 tons.

To maintain transparency, the company continues working closely with U.S. and international law enforcement agencies and is collaborating with a Big Four accounting firm on an independent audit of its reserves.

At the policy level, Tether has engaged with U.S. lawmakers, including Representatives Bryan Steil and French Hill, to help shape the regulation of stablecoins.

CEO Paolo Ardoino also indicated the firm’s involvement with additional legislative efforts intended to formalize the stablecoin sector.