Tether’s Gold-Backed Token Smashes Record—7.7 Tons Now Locked as Investors Flee to Digital Safe Havens

Forget Fort Knox—Tether’s tokenized gold reserves just hit an all-time high of 7.7 metric tons. As global markets wobble, crypto’s favorite stablecoin issuer is hoarding bullion faster than a central banker during a crisis.

Why the rush? Traditional gold ETFs are so 2023. Investors want the liquidity of crypto with the ’sound money’ narrative—even if it’s backed by a company that still won’t disclose its office address.

Bottom line: When the apocalypse comes, you’ll either be holding physical ingots… or a Tether receipt for them. Choose wisely.

Rising gold demand bolsters Tether XAUT

According to Tether, growing global instability has strengthened demand for gold, which inadvertently boosted interest in XAUT.

During the first quarter of 2025, the stablecoin issuer noted that global economic uncertainty, escalating geopolitical risks, and fears of new trade barriers led investors to seek safer assets. This climate helped drive XAUT’s rising market cap to new highs.

Moreover, gold itself delivered a standout performance during the reporting period.

Analysts at The Kobeissi Letter noted that gold prices have outpaced the S&P 500 by 32.6% year-to-date, marking the most significant divergence since 1975.

The analysts also noted that gold prices have rallied 26.5% this year, while the S&P 500 has declined by 6.1%. This trend positions gold for its second consecutive year of outperforming the stock market.

Further supporting gold’s momentum, central banks worldwide are boosting their gold holdings. The precious metal accounts 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.

Tether targets emerging markets

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 the company intends for XAUT to serve a similar role to USDT in emerging markets.

USDT acts as a digital dollar for over 450 million users globally and holds a market capitalization exceeding $147 billion, according to CryptoSlate’s data.