Tether's Tokenized Gold XAU₮ Sees Growth Amid Economic Uncertainty

Tether, the issuer of the world's largest stablecoin USDT, has reported significant growth in its tokenized gold product, XAU₮, amidst a shifting global monetary landscape.

In its first official attestation for Q1 2025 , released on April 28th, Tether revealed that each XAU₮ token in circulation is backed 1:1 by one troy ounce of physical gold, totaling more than 7.7 tons securely stored in dedicated vaults in Switzerland. The product is now also regulated in El Salvador, marking a new regulatory milestone for XAU₮.

The attestation highlights key Q1 2025 figures, including a market capitalization of $770.0 million and a price per XAU₮ of $3,123.57. Notably, the all-time high price for XAU₮ reached $3,423 on April 21, 2025, representing a 9.6% increase from the end of Q1. Tether emphasized that the quantity of gold backing the token (246,523.33 ounces) is of greater significance than the price, which remains subject to market volatility.

The growing interest in tokenization across various asset classes, including gold, reflects a broader trend in the financial industry towards leveraging blockchain technology for increased efficiency, transparency, and accessibility. Tokenization allows for fractional ownership and easier trading of traditionally less liquid assets. Gold, with its long history as a safe-haven asset and a hedge against inflation, is a natural fit for tokenization, offering investors a digital way to hold and trade the precious metal.

"Tether Gold continues to demonstrate the strength and resilience of gold as a store of value, especially in times of economic uncertainty…It’s part of our broader commitment to building financial tools that combine the best of traditional assets with the efficiency of blockchain technology," Paolo Ardoino, CEO of Tether, said.

Tether attributed the growth of XAU₮ during the first quarter to escalating global economic uncertainty, heightened geopolitical tensions, and a rising demand for inflation-resistant stores of value. The company noted a sustained surge in market capitalization coinciding with investor concerns over new international trade tariffs, further validating gold's traditional role as a hedge in volatile markets.

The announcement also provided context on broader market trends for gold. Over the past two years, gold has experienced a significant rally, supported by consistent central bank accumulation, particularly from BRICS nations seeking to diversify away from U.S. dollar dependency . The World Gold Council reported global gold reserves at 37,755 metric tons at the end of 2024, with central banks making net purchases of 1,044.6 metric tons in the same year.

Tether positions XAU₮ as a crucial tool for investors, particularly in emerging markets, offering access to tokenized physical gold with the same standards of compliance, security, and transparency as its flagship stablecoin, USDT. The company contrasts XAU₮ with non-compliant gold token offerings, emphasizing its legal certainty and verifiable physical backing through London Bullion Market Association (LBMA) gold bars stored in Switzerland and subject to stringent controls and audits.