Tether's gold-backed token XAUT has increased significantly during the first quarter of 2025

Tether's gold-backed token, XAUT, has experienced a significant surge during the first quarter of 2025, the company's official attestation published on April 28 reveals. Each token is backed by one troy ounce of physical gold, and the current supply is backed by nearly eight tons of gold stored in Swiss vaults.

As of March 2025, the market capitalization for XAU would equal $770.0 million, with each token trading for $3,123. Just a couple of weeks later, the price of the token hit a record high of $3,423 on 21st April, reflecting a whopping 9.6% appreciation from the end of the quarter.

“Investors should be more interested in the true gold backing (246,523 ounces) rather than dollar denominations, which simply go up and down with the market,” Tether said.

Tether Reports XAU₮ Grows Amid Shifting Monetary Landscape, Releases its First Attestation for Q1 2025, More Than 7.7 Tons of Physical Gold Backing the Token in Circulation

Read more @tethergold ?https://t.co/GM2ngyVFO6— Tether (@Tether_to) April 28, 2025

The expansion in tokenized gold occurs during a two-year surge in gold prices fueled in part by central bank purchases. According to reports by the World Gold Council, the total gold reserves held by the world were 37,755 metric tons as of the end of 2024.

Central banks purchased 1,044 metric tons in that year alone. BRICS countries were among the largest buyers as they diversified their holdings from the US dollar.

According to a report by the Commodities Futures Trading Commission, the number of new bitcoin futures contracts grew in the first quarter of 2025.

The stellar performance of cryptocurrencies in 2024 appears to be continuing in 2025. In a recent interview with Blockware Solutions, Ben Armstrong, the host of the popular crypto YouTube channel "Armstrong and Harris," discussed the rapid price movements of cryptocurrencies.

Multiple factors pushed investors towards gold in early 2025, Tether reports: increasing economic uncertainty, deteriorating political tensions globally, and the demand for investments that perform well against inflation.

The company reported that the market size of XAUT increased rapidly when investors were concerned about new global trade tariffs. The firm also reported that El Salvador has officially included XAUT in its regulated financial products list.

“Tether Gold continues to demonstrate the resilience and enduring nature of gold as a store of value, especially in times of economic uncertainty,” said Paolo Ardoino, Chief Technology Officer at Tether. “We are committed to ensuring that XAUT maintains the highest standards of compliance and backed by the physical gold, which is regularly subject to independent audits.”

Tokenization transforms traditional assets such as gold into digital tokens for exchanges across blockchain networks. It allows smaller portions of high-priced assets to be purchased and transferred relatively quickly. Thus gold, which has always been a kind of safeguard from economic distress, fits easily into the new trading model.