Tether Gold (XAUT) Reserves Surge as Demand for Tokenized Gold Hits Record Highs
Tether bolstered its physical gold reserves backing the XAUt token to 11.6 metric tons during Q3, coinciding with gold prices reaching unprecedented levels. The company now safeguards 375,000 ounces of the precious metal in Swiss vaults, with the token's market capitalization exploding to $2.1 billion by October.
The resurgence of inflation fears and geopolitical instability has reignited institutional interest in digital Gold products. Each XAUT token represents direct ownership of one troy ounce of LBMA-certified gold, offering investors frictionless exposure to bullion markets without custody complexities.
Emerging market participants are driving adoption, particularly in regions with restricted access to traditional gold investment vehicles. Tether CEO Paolo Ardoino observes: "Tokenization solves the perennial challenges of gold ownership—storage, verification, and liquidity—while preserving its timeless value proposition."
