Tether Gold Secured by 7.7 Metric Tons of Gold Stored in Swiss Vault

Tether Gold (XAUT), a stablecoin pegged to gold, achieved a $770 million market cap as reported on April 28, following its first assessment under the financial regulations of El Salvador.

Tether’s CEO, Paolo Ardoino, shared on X that while central banks are accumulating vast gold reserves, Tether Gold aims to be the go-to tokenized gold asset for both individuals and institutions.

According to Tether, each XAUT is fully backed by 246,523.33 ounces of physical gold, which amounts to over 7.7 tons, secured in a vault situated in Switzerland.

Every XAUT token corresponds to one troy ounce of gold that meets the standards set by the London Bullion Market Association (LBMA). Tether insists on rigorous verification processes, including gold bar checks and routine audits, to uphold the credibility of the token’s backing.

This attestation arrives as global investors are increasingly seeking gold as a safeguard against potential economic turbulence and growing geopolitical uncertainties.

Central banks, especially those in BRICS countries, have reported historic gold purchases, acquiring more than 1,044 metric tons just in 2024, according to findings from the World Gold Council.

In 2025, gold has reached record prices amidst a bullish trend, with a year-to-date increase of approximately 27%. Currently, the precious metal is priced around $3,343 per ounce, more than doubling since November 2022.

Tether pointed out that XAUT stands out from other tokenized gold options due to its physical backing and regulatory oversight, making it a more secure alternative for users hesitant about “paper gold.”