Tether Gold, the gold-backed stablecoin issued by Tether, has seen its market value surge past $800 million as investors increasingly turn to safe-haven assets amidst rising inflation concerns. A recent attestation by third-party auditor BDO Italia confirmed that Tether Gold is backed by over 7.7 tons of physical gold.
As of March 31, 2025, the market capitalization of Tether Gold (XAUT) reached $770 million, with each token backed by a corresponding ounce of gold. At that time, the price of XAUT was approximately $3,123 per token, reflecting a 9.6% increase from the previous financial quarter. As of the latest data, XAUT’s price has risen further to $3,344, pushing its market cap to around $825 million.
Tether’s CEO, Paolo Ardoino, expressed confidence in XAUT’s growth, stating on social media, “While central banks are stacking up hundreds of tons of gold, XAUT is set to become the standard tokenized gold product for the people and institutions.”
This surge in Tether Gold’s value coincides with growing investor interest in gold, spurred by concerns over inflation and rising geopolitical tensions, such as the ongoing trade disputes under U.S. President Donald Trump. The price of gold has risen by 7% since April 2, 2025, when the Trump administration proposed significant tariffs on foreign trading partners. In turn, the price of gold has continued to climb to new all-time highs, driven by broader market volatility.
Central banks have also shown a growing appetite for gold, with 29% reporting plans to increase their reserves over the next year, according to the World Gold Council’s 2024 Central Bank Gold Reserves (CBGR) report.
Despite the growing success of Tether Gold, the company has faced scrutiny over its financial reporting practices. Critics have raised concerns about the transparency of Tether’s operations, particularly regarding its flagship stablecoin, USDT. The attestation provided by BDO Italia does not meet international financial reporting standards, which has prompted calls for independent audits of Tether’s reserves. Tether was reportedly exploring options to contract with a “Big 4” auditing firm earlier this year.
Additionally, BDO Italia has faced its own controversies, with the firm being fined $250 million by Italy’s securities regulator, CONSOB, for alleged violations of auditing standards. The U.S. Securities and Exchange Commission (SEC) also charged BDO Italia in 2015 for issuing “false and misleading” audit opinions. Tether has yet to respond to inquiries regarding whether it plans to continue using BDO Italia for attestations related to its financial products.
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