Tether has published its first official audit for its gold-backed token, XAU₮. According to the report, every XAU₮ token is backed 1:1 by one troy ounce of real gold. In total, Tether holds over 7.7 tons of physical gold in secure Swiss vaults. The gold bars meet London Bullion Market Association (LBMA) standards and are under strict security controls. Tether claims rigorous checks, including audits and verification procedures, to ensure full transparency.
This audit matters because XAU₮’s market cap hit $770 million by the end of Q1 2025. Tether stressed that the amount of gold held is more important than price swings. Still, XAU₮ reached an all-time high of $3,423 on April 21, 2025. The report is part of Tether’s push to strengthen trust in its stablecoin products after past scrutiny.
El Salvador Moves to Regulate Tokenized Gold Like XAU₮
Tether’s audit comes right after big news from El Salvador. The country has moved to officially regulate tokenized gold assets, including Tether’s XAU₮. This move could make El Salvador a key hub for the gold-backed crypto market. Regulation brings legal clarity and is expected to boost investor confidence.
El Salvador’s actions fit a larger trend. Countries are searching for financial alternatives as global uncertainty grows. With many nations buying up gold and moving away from U.S. dollar reliance, gold-backed assets like XAU₮ are becoming more attractive. Tether praised El Salvador’s vision for supporting innovation while ensuring transparency.
Why Tether Gold (XAU₮) Is Gaining Popularity
The growth of Tether Gold (XAU₮) did not happen by accident. Global inflation, trade wars, and economic instability are pushing investors toward gold. Central banks, especially from BRICS countries, added over 1,000 metric tons of gold to reserves in 2024 alone. This wave of buying shows gold’s rising role as a safety asset.
Tether’s report linked XAU₮’s success to these larger forces. Investors want protection against market chaos, and XAU₮ offers a digital gateway to physical gold. Plus, the stablecoin is easily transferable and backed by fully allocated gold reserves. For crypto users, it’s a modern way to hold an ancient asset without logistical headaches.
Tether Expands USD₮ and XAU₮ to The Open Network
Tether also announced a major expansion. Both its USD₮ and XAU₮ tokens are now live on The Open Network (TON). This adds to Tether’s presence across 15 blockchains, including Ethereum, Solana, and Polygon. The move supports TON’s vision of an open, decentralized internet and borderless finance.
Paolo Ardoino, Tether’s CEO, said the integration strengthens their mission to power open financial infrastructure. He described XAU₮ as a “secure, easily transferable” digital form of physical gold. By offering USD₮ and XAU₮ on more networks, Tether is betting big on wider crypto adoption.
Final Thoughts
With the first audit of XAU₮, Tether is trying to erase doubts from the past. The company shows it is serious about full transparency for its gold-backed stablecoin. El Salvador’s new regulations, combined with global trends, could drive more adoption of USD₮ and XAU₮.
Tether still faces challenges, especially around trust and auditability. But with strong demand for alternatives to the U.S. dollar and traditional banking, products like XAU₮ are well-positioned. Time will tell if Tether can hold the crown in both the stablecoin and tokenized gold arenas.
