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.
Tether Gold XAUt will become the biggest tokenized gold market in the world.Gold price is going up, as a consequence of the world trying to hedge Chaos. Central banks are loading up on hundreds of billions in gold as part of their reserves.XAUt opens up the digital gold… pic.twitter.com/gJNCZHLoVY
— Paolo Ardoino (@paoloardoino) April 22, 2025
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.
Investors Turn to Physical Assets Amid Market Uncertainty
There is a rising geopolitical tension and inflation fear due to the U.S. President Donald Trump’s tariffs, investors are increasingly turning to physical assets like a bar of gold as a hedge against market uncertainty. Unlike other tokenized gold offerings, Tether Gold is fully backed by physical reserves and regulated, offering an alternative to “paper gold” products and appealing to users seeking secure and alternative, better investments. While Tether Gold strengthens its position in the tokenized commodity sector, broader shifts are also emerging across the stablecoin market. Tether co-founder Reeve Collins recently revealed that USD-backed stablecoins currently dominate the sector, and other currencies and asset-backed stablecoins are beginning to challenge that dominance.
Wider Range of Stablecoin Choices Ahead
Collin has highlighted that users will soon have a diverse range of stablecoin options backed not just by fiat currencies but by a broad spectrum of tokenized assets. Further, he emphasized that the momentum toward mainstream stablecoin acceptance. Collins also pointed to the launch of the World Liberty Financial (WLFI) stablecoin, which is backed by Trump. This stablecoin was launched on BNB Chain and Ethereum in March. The WLFI tokens are not yet tradable, but their existence is indicative of a major endorsement of stablecoin technology at the highest political levels.
The post Tether Confirms $770M in XAUt Reserves for Q1 as Demand for Non-USD Stablecoins Grows appeared first on Coinfomania.
