Tether, the issuer behind the world’s largest stablecoin USDT, has announced substantial growth in its tokenized gold offering, XAU₮, amid a volatile global economic environment.
In its first-quarter 2025 attestation, released on April 28, Tether confirmed that each XAU₮ token is fully backed by one troy ounce of physical gold, totaling over 7.7 tons of gold securely stored in vaults in Switzerland. The token is now also officially regulated in El Salvador, marking an important milestone in its regulatory journey.
The Q1 2025 report highlighted a market capitalization of $770 million for XAU₮, with the token’s price reaching $3,123.57 per unit. Notably, XAU₮ hit an all-time high price of $3,423 on April 21, 2025, a 9.6% increase from the end of the first quarter. However, Tether emphasized that the amount of gold backing the token—246,523.33 ounces—was of more significance than its fluctuating price, which is subject to market conditions.
This surge in interest in tokenized assets, including gold, is part of a larger trend within the financial industry to adopt blockchain technology to improve efficiency, transparency, and accessibility. Tokenization enables fractional ownership and easier trading of assets that are traditionally less liquid. Given gold’s long-standing reputation as a safe-haven asset and hedge against inflation, its tokenization offers investors a digital method to hold and trade this precious metal.
“Tether Gold continues to showcase the strength and resilience of gold as a store of value, particularly during periods of economic instability,” said Paolo Ardoino, CEO of Tether. “It’s part of our broader mission to build financial tools that merge the best of traditional assets with the efficiency of blockchain technology.”
Tether attributes the growth of XAU₮ in the first quarter of 2025 to growing global economic uncertainty, increasing geopolitical tensions, and a rising demand for inflation-resistant assets. The company also noted that the token’s market capitalization grew alongside investor concerns over international trade tariffs, reaffirming gold’s historical role as a safe-haven asset during times of market volatility.
In a broader context, gold has seen a significant price rally over the past two years, largely driven by consistent accumulation from central banks, particularly in BRICS nations, as they seek to reduce their reliance on the U.S. dollar. According to the World Gold Council, global gold reserves stood at 37,755 metric tons at the end of 2024, with central banks making net purchases of 1,044.6 metric tons in that year alone.
Tether sees XAU₮ as a key investment tool, especially for investors in emerging markets. The token provides access to tokenized physical gold, with the same level of compliance, security, and transparency as Tether’s flagship stablecoin, USDT. Tether differentiates XAU₮ from other non-compliant gold-backed tokens by emphasizing its legal certainty and its physical backing with London Bullion Market Association (LBMA)-approved gold bars stored in Switzerland, subject to rigorous audits and controls.
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