Tether, the prominent stablecoin issuer, has officially disclosed that it holds more than 7.7 tons (246,523.33 troy ounces) of physical gold as reserves backing its tokenized gold asset, Tether Gold (XAU₮). This announcement was made in the company’s first formal attestation report for Q1 2025, marking a significant milestone in transparency and regulatory compliance for the digital gold product.
Each XAU₮ token is fully collateralized on a 1:1 basis with one troy ounce of LBMA-certified physical gold securely stored in a high-security vault located in Switzerland. This arrangement ensures that token holders have direct exposure to real gold, combining the traditional value of the precious metal with the efficiency and transferability of blockchain technology.
The report highlights that XAU₮ has reached a market capitalization of approximately $770 million, with the token trading around $3,123 per unit as of late April 2025. Notably, XAU₮ hit an all-time high price of $3,423 on April 21, 2025, reflecting increased investor interest amid ongoing global economic uncertainties and geopolitical tensions.
Paolo Ardoino, Tether’s CEO, emphasized the growing demand for gold-backed digital assets, especially in emerging markets, and the role of XAU₮ as a secure and stable store of value. He noted that the token offers users a reliable way to access physical gold’s security in a digital format, reinforcing Tether’s commitment to bridging traditional assets with blockchain innovation.
This strategic accumulation of gold reserves and the regulatory framework established in El Salvador position Tether Gold as the leading tokenized gold product in the market, appealing to both retail and institutional investors seeking safe-haven assets during volatile times.
Alongside its gold holdings, Tether continues to be a major Bitcoin investor, maintaining a diversified approach to digital asset backing.
In summary, Tether’s confirmation of holding over 7.7 tons of physical gold solidifies XAU₮’s status as a premier gold-backed stablecoin, combining transparency, security, and market confidence in a period of heightened economic uncertainty.
