Tether, the company best known for its USDT stablecoin pegged to the U.S. dollar, has disclosed in its latest attestation report that it acquired 7.7 tons of gold to support its XAU₮ token.
The company's first official attestation for the first quarter of 2025 showcases an impressive figure: each of the 246,523 XAU₮ tokens in circulation is backed 1:1 by one troy ounce of physical gold, meticulously stored in Switzerland's vaults.
This translates to a total of 246,523 troy ounces, or 7.7 tons, of gold backing XAU₮, which is fully regulated in El Salvador, further enhancing its credibility and compliance.
The news arrives as the world's largest cryptocurrency exchange, Binance, is also planning to introduce its own gold-backed token later this year.
With the global economy facing uncertainty and increased demand for safe-haven assets, gold has experienced a significant rally in recent years.
As Tether expands the reach of XAU₮, especially in emerging markets, it aims to provide users with a digital form of gold that is easily transferable and fully backed by physical reserves.
The market capitalization of XAU₮ is $770 million, with the token currently priced at $3,123.57 per token.
Earlier this year, on April 21, XAU₮ reached an all-time high of $3,423, marking a 9.6% increase since the end of the first quarter.
The company's complete attestation report can be accessed on its website.
