#AirdropStepByStep Tether has expanded its physical gold reserves by purchasing over 7.7 new tons, supporting the coverage of its gold-linked digital product XAU₮. This announcement comes as part of the first regulatory certification issued by the company for Q1 2025, reflecting the growing global demand for stable and inflation-protected assets.

Why did Tether buy gold?

As geopolitical tensions rise and concerns about new trade tariffs and ongoing global financial uncertainty persist, Tether aims to enhance the reliability of the XAU₮ currency as a secure digital solution for investors seeking safe havens through this investment.

Each XAU₮ token is fully backed by one troy ounce of gold approved by the London Stock Exchange (LON:LSEG) for precious metals (LBMA), securely stored in Switzerland, reaffirming Tether's commitment to compliance, transparency, and operational integrity.

The rise of XAU₮ as a leading digital gold investment

The market capitalization of XAU₮ reached approximately $770 million by the end of Q1 2025, with a price of $3,123.57 per token. This strong performance reflects the growing interest in digital assets backed by real commodities.

Unlike many other gold tokens that may face regulatory or operational risks, XAU₮ features reliable coverage and a robust legal framework. It has also received official regulatory recognition in El Salvador, enhancing its status among individual and institutional investors.

Additionally, XAU₮ hit an all-time high of $3,423 on April 21, 2025, achieving a 9.6% increase since the end of Q1. This confirms its role as a modern means combining traditional wealth preservation with financial innovation based on blockchain technologies.

Global trends drive demand for gold-backed tokens

Central banks, especially in BRICS countries, have continued to bolster their gold reserves to reduce dependence on the US dollar. In 2024 alone, central banks added over 1,044 metric tons of gold.

Tether benefited from this trend by expanding XAU₮, providing a reliable digital tool for investors and emerging markets to access the power of gold through fully-backed assets on the blockchain network.

Conclusion

Tether's move to increase gold reserves enhances the status of XAU₮ as one of the most important digital options for protecting wealth from market volatility and inflation. With full backing by real gold and regulatory compliance, XAU₮ establishes itself as a bridge between traditional assets and digital innovation.