Tether Gold (XAU₮) Drops Proof of Reserves – $770M Token Now Backed by Audited Bullion

Tether just flashed its gold receipts. The stablecoin giant released its quarterly attestation for XAU₮—its gold-pegged token—showing $770M in market cap backed by physical bars. Cue the institutional investors pretending they’ve always loved shiny rocks.

Key details:

- Each XAU₮ token represents 1 troy ounce of LBMA-approved gold

- Swiss vaults hold the actual bullion (no ’fractional’ funny business)

- Independent auditors verified the hoard—unlike certain ’algorithmic’ stablecoins we could name

This comes as gold hits record highs while fiat currencies... don’t. Maybe those medieval alchemists were onto something after all.

Paolo Ardoino, the CEO of Tether, emphasized that the token is safe. He stated, “XAU₮ enables users to have access to the stability of physical gold in digital form.” The company highlighted that the value of XAU₮ is entirely backed by real gold reserves. This makes it a reliable option for investors who seek security amidst uncertain times.

XAU₮ is gaining attention as more individuals globally are demanding gold. One of the reasons is that central banks, particularly those in the BRICS nations, are increasing gold reserves to hedge against inflation and reduce dependence on the U.S. dollar.

The World Gold Council stated that in 2024, the central banks bought more than 1,000 metric tons of gold, and this helped drive gold prices up by 2024. In 2025, gold has been doing great, beating the S&P 500 by 32.6% year to date. Analysts observed that gold prices have gone up by 26.5%, but the S&P 500 has dropped by 6.1%.

Tether’s focus on XAU₮ is not simply providing a safe-haven asset for investors. The company is also targeting emerging markets where people are subject to currency devaluation or political instability.

Ardoino said, “XAU₮ is secure, easy to transfer, and fully backed by physical gold reserves on a one-to-one basis.” This provides those in these markets with access to a stable, digital representation of gold.

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