Tether Releases First Attestation Report for its Gold-Backed Token, Tether Gold (XAU₮)

The world’s largest stablecoin issuer, Tether, has released its first formal attestation for its gold-backed token, Tether Gold (XAU₮).

In another noteworthy development, the world’s largest stablecoin issuer, Tether, has unveiled its first formal attestation for the gold-backed token, Tether Gold (XAU₮). Notably, this token falls under El Salvador’s regulatory framework.

The report, as of the first quarter of 2025, indicates that over 7.7 tons of physical gold is backing the circulating supply of XAU₮, further cementing its position as the market’s largest tokenized gold asset.

7.7 Tons of Gold Backing, $770M Market Cap

As of the end of Q1 2025, Tether reports that 246,523.33 troy ounces of gold are held in secure vaults in Switzerland, backing XAU₮ on a 1:1 basis. At the attestation date, the price per token stood at $3,123, with the market cap reaching approximately $770 million.

The development comes after XAU reached an all-time high of $3,423 on April 21, 2025, driven by rising demand for safe-haven assets amid gold’s uptick. This coincided with the global downturn in financial markets, including crypto assets.

The attestation marks the first under a new regulatory regime in El Salvador, where XAU is now a regulated digital asset. This provides additional legal certainty and sets Tether Gold apart from other gold-backed tokens.

Gold Demand Soars as BRICS Central Banks Lead Accumulation

XAU’s growth reflects broader macro trends, as global investors and governments seek refuge from escalating inflation, trade disputes, and geopolitical instability.

According to the World Gold Council, central banks purchased 1,044.6 metric tons of gold in 2024. BRICS nations led the charge in diversifying away from U.S. dollar reliance.

Tether presents XAU as a natural extension of gold’s historical role as a store of value, now accessible via blockchain.

Notably, Tether CEO Paolo Ardoino stated that XAU enables users to access the stability of physical gold in digital form. It is designed to be easily transferred and fully backed by physical gold on a one-to-one basis.

While Bitcoin remains the long-term vision for decentralized finance, Tether emphasizes that gold is already trusted in many emerging markets. XAU fills a gap, especially for populations experiencing currency devaluation or political instability, by offering a digital, legally-backed version of their traditional hedge.

As fiat systems face mounting pressure, blockchain-based alternative assets like XAU act as hybrid assets. XAU combines centuries-old trust in gold with the efficiency and reach of digital assets.