Tether Gold (XAUT) Reaches $770 Million Market Capitalization

Tether’s gold-backed stablecoin, Tether Gold (XAUT), reached a $770 million market capitalization as of April 28

Tether’s gold-backed stablecoin, Tether Gold (XAUT), reached a $770 million market capitalization as of April 28, according to the company's first attestation statement.

The company said it is applying strict controls, including gold bar verification and periodic audits, to maintain trust in the token's backing.

The attestation comes at a time when global investors are increasingly turning to gold as a hedge against economic instability and rising geopolitical risks.

Central banks, particularly across BRICS nations, have been buying gold at record levels, accumulating over 1,044 metric tons in 2024 alone, according to the World Gold Council.

The yellow metal has touched numerous record highs in 2025 amid an ongoing rally that's seen its price gain about 27% year-to-date. It's currently trading at $3,343 per ounce, having more than doubled since November 2022.

“While central banks are stacking up hundreds of tons of gold, XAUT is set to become the standard tokenized gold product for the people and institutions,” Tether CEO Paolo Ardoino posted on X.

The token is backed 1:1 by 246,523.33 ounces — over 7.7 tons — of physical gold stored in a dedicated Swiss vault, said Tether.

Each XAUT token represents one troy ounce of LBMA-certified gold.

“We are proud to be able to offer this unique product to our customers,” said Ardoino. “We believe that it will be a valuable addition to the Tether ecosystem.”

Tether also noted that it’s the only tokenized gold product to be included in El Salvador’s financial services legislation, rendering it a fully compliant product in the country.

The company's statement comes in response to El Salvador's regulations requiring large-scale bitcoin companies operating in the country to submit attestations.

The attestations must be prepared in accordance with International Financial Reporting Standards and include details such as the company's financial position, revenue and expenses, and the types of services it provides.

Earlier this month, a report by crypto analytics firm Messari found that Tether might be struggling to keep up with the demand for XAUT.

The firm said it observed a "notable disparity" between the reported XAUT supply on blockchain and the figures stated in Tether's attestations.

"Despite reporting 7.7 tons of gold backing XAUT in April attestation, which aligns with the 246,523.33 ounces mentioned in the attestation, the total XAUT tokens in circulation on April 28 amounted to 244,144," Messari stated.

"This discrepancy suggests an outstanding 2,379.33 ounces (about $414,000 at current prices) of XAUT tokens unaccounted for."