Tether’s Gold-Backed Token Reaches All-Time High of 7.7 Tons Amid Rising Global Demand for Safe-Haven Assets

Tether’s gold-backed token, XAUT, has published its first official attestation, revealing a total backing of 246,523.33 ounces, which is more than 7.7 tons of gold.

As of April 28, XAUT is valued at $3,123.57 per token, resulting in a total market capitalization of $770 million. The token achieved its peak price of $3,423 on April 21, reflecting a 9.6% increase since the end of the first quarter.

Tether characterizes XAUT as a leading player in the tokenized gold market, emphasizing its market size, security protocols, and regulatory adherence. The company stated that this attestation marks a crucial advancement in bolstering the project’s transparency and long-term attraction for both institutional and retail investors.

Increasing Gold Demand Boosts Tether XAUT

Tether has observed that rising global instability has elevated demand for gold, subsequently increasing interest in XAUT.

In the first quarter of 2025, the issuer noted that factors like economic uncertainty, heightened geopolitical tensions, and potential trade barriers prompted investors to gravitate toward safer assets. This environment has propelled XAUT’s market capitalization to reach new heights.

Additionally, gold’s performance during this period was impressive.

Experts from The Kobeissi Letter reported that gold prices have outperformed the S&P 500 by 32.6% so far this year, marking the most significant gap since 1975.

The analysts highlighted that gold values have surged 26.5% this year, whereas the S&P 500 has seen a decline of 6.1%. This trend signals that gold is set for its second consecutive year of surpassing stock market performance.

Supporting gold’s upward trajectory, central banks around the world have been increasing their gold reserves. This precious metal now constitutes about 18% of global international reserves, the highest percentage recorded in 26 years. China has significantly contributed to this increase, doubling its gold reserve share to 7.1% since early 2023.

Tether Aims for Emerging Markets

Tether CEO Paolo Ardoino disclosed plans to enhance the accessibility of XAUT, particularly within emerging markets.

He stated:

“With XAUT, we’re granting users the capability to access the stability of physical gold in a digital format—secure, easily transferable, and backed 1:1 by fully held gold reserves. It aligns with our ongoing effort to develop financial instruments that merge the strengths of traditional assets with the advantages of blockchain technology.”

This indicates that the company envisions XAUT fulfilling a similar function to USDT in emerging markets.

USDT operates as a digital currency for over 450 million users worldwide and boasts a market valuation exceeding $147 billion, according to available data.