Tether Confirms $770M in XAUt Reserves for Q1 as Demand for Non-USD Stablecoins Grows

Tether released its first official attestation for gold-backed stablecoin, Tether Gold (XAUt), for Q1 2025. XAUt recently touched a major milestone by hitting $817 million in market capitalization as of April 28, 2025. The company report under El Salvador’s new regulatory framework reveals that each XAUt token is backed 1:1 by physical gold, with more than 7.7 tons (246,523.33 ounces) of LBMA-certified gold stored in a Swiss vault.

Strict Controls and Growing Trust in Tether Gold

The company clearly indicates that there are strict controls applied, including gold bar verifications and periodic audits, to maintain trust in the backing of the token. Tether CEO Paolo Ardoino stated on X that “XAUt opens up the digital gold opportunity to the hundreds of millions of people already using USDt.” Paolo posts on X that, as there is rising global instability and central banks are stockpiling gold, Tether XAUt offers regular users a simple and alternative way to own tokenized gold digitally.

Surge in Global Gold Demand Supports Tether Gold Growth

The timing of this launch and development by Tether aligns with the surge in the demand for gold. Central banks, especially across the BRICS nations, accumulated over 1,044 metric tons of gold in 2024 alone, according to the World Gold Council. Gold prices have risen sharply and witnessed a gain of about 27% in 2025 till now and are currently trading at around $3,322.39 per ounce as of April 29, 2025, more than double their price since November 2022.

XAUt/USD chart, published on CoinMarketCap, April 29, 2025

Tether Gold (XAUt) is priced at $3,316.99, indicating a 1.06% increase over the past 24 hours. The market capitalization stands at around $819.1 million, also up by 1.07% in 24-hour trading volume. This stablecoin market trend shows a steady activity as interest in the gold-backed stablecoin asset grows amid the rise of the gold price globally during economic uncertainty.