Tether's XAUT Tokenized Gold Product Now Backs 7.7 Tons of Physical Gold

output: Tether, the company behind the stablecoin USDT, has reported a significant increase in the amount of physical gold backing its tokenized gold product, XAUT.

In its first report of 2025, Tether revealed that XAUT now holds 7.7 tons of gold, which translates to over 246,000 ounces of the precious metal. The token, currently trading at $3,123.57, has seen a 9.6% increase in value since the last quarter, reaching a new all-time high of $3,423 on April 21.

This surge in XAUT’s value is largely attributed to the heightened demand for safe-haven assets, driven by the complex global economic environment. International tensions, economic challenges, and inflation have pushed many investors to seek refuge in gold, directly benefiting XAUT. Additionally, the report highlights the increased gold purchases by central banks, especially from countries outside the U.S. dollar’s sphere of influence, which have also contributed to the tokenized product’s success.

The company highlighted that its product stands out in the market by adhering to strict security and regulatory compliance standards, giving it an edge in terms of transparency. Unlike other digital gold offerings that don’t always have solid physical backing, XAUT is 100% backed by gold stored in top-tier facilities in Switzerland, ensuring both the integrity and value of the token.

Tether also mentioned its plans to expand XAUT adoption, particularly in emerging markets, where gold has traditionally served as a tool to hedge against inflation and economic instability. According to the company, tokenizing gold provides users with a modern, accessible way to benefit from its advantages without the logistical challenges of physical storage.

Amid growing global market uncertainty, Tether aims for XAUT to become an appealing option for those looking to preserve value during volatile times while leveraging blockchain technology for transactions.