Tether (XAUT) token now holds approximately 7.7 tons of physical gold reserves

Stablecoin issuer Tether has stated that its Tether Gold (XAUT) token now holds approximately 7.7 tons of physical reserves.

The company has also released the first official attestation for XAUT, which launched in 2020. According to the report by the accounting firm DWT, covering the first quarter of 2025, the gold reserves, consisting of 246,523 ounces (about 7.7 tons), remain safely stored in Switzerland. The market capitalization of XAUT reached $770 million by the end of the period.

The attestation follows Tether’s decision to operate under El Salvador’s new digital asset regulations. The stablecoin issuer backs XAUT tokens through their compliance with international standards which represents one troy ounce of LBMA-certified gold.

Rising Demand for Gold-Backed Digital Assets

World demand for gold continues to rise, coinciding with the release of the XAUT attestation. The metal serves as a key asset for investors amid persistent geopolitical tensions, inflation fears and financial market instability.

According to the World Gold Council, global central banks purchased over 1,044 metric tons of gold in 2024, with BRICS nations leading these acquisitions. The growing market trend demonstrates that gold is essential to protect against economic uncertainty.

Tether noted that XAUT provides a digital alternative to traditional gold investment. Through blockchain technology, investors can access gold investments without delay and with easier access to gold while maintaining trust through verified reserves and periodic audits.

“We are pleased to provide the first attestation for Tether Gold, demonstrating our commitment to transparency and best practices,” said Paolo Ardoino, CEO of Tether. “XAUT bridges conventional gold storage methods with advanced digital financial products suitable for both individuals and institutions.”

XAUt – Tether Gold stablecoin – first attestation is out ?

Highlights:

– more than 7.7 tons of physical gold backing 100% of the issued tokens

– gaining important traction in emerging markets

– several new exchange listings in the pipeline

– strong compliance

– XAUt physical… https://t.go/KDrN1KpPgx

Tether Gold’s Position in the Growing Tokenized Gold Market

As reported by Token Terminal, Tether Gold holds the top position in market capitalization among tokenized gold products. The token hit its peak value of $3,423 on April 21, 2025, as gold’s rising valuation was reflected in worldwide markets.

At present, the market value of gold stands at approximately $3,343 per ounce, showing a 27% increase year-to-date.

Differentiating XAUT is its strict one-to-one physical gold backing, setting it apart from other offerings. The company performs gold bar verification to maintain transparency while following procedures for a Type III U.S. Generally Accepted Accounting Principles (GAAP) audit. This distinguishes XAUT from derivative products or "paper gold" systems, offering physical ownership of stored gold in world-class Swiss vaults.

Furthermore, XAUT’s operation under El Salvador’s digital asset regulations adds another layer of legal certainty to the product.

"This stablecoin serves as a reliable tool for those in need of value protection due to the mounting pressure on fiat currencies and the changing economic circumstances," Tether's statement reads.