Tether’s latest attestation for Tether Gold (XAUT) in the first quarter of 2025 has confirmed that every XAUT token in circulation is fully backed by physical gold. The company reported on April 28, 2025, that over 7.7 tons of gold, equivalent to 246,523.33 troy ounces, are securely backing the tokens.
XAUT, each representing one ounce of LBMA-certified gold, continues to be the highest market-cap tokenized gold product available. The physical gold supporting XAUT is stored in a dedicated vault within top-notch facilities in Switzerland, with stringent controls governing the acquisition and storage processes. These measures include careful counterparty selection, certificate verification, and periodic gold assays overseen by an auditor.
Tether disclosed that the market capitalization of XAUT has now surpassed $770 million, with the price per token recorded at $3,123.57 at the end of Q1. On April 21, 2025, XAUT reached an all-time high of $3,423, marking a 9.6% increase since the quarter’s close. The company emphasized that while gold prices can be volatile, the key metric for XAUT remains the quantity of gold held in reserve.
The growth of XAUT is attributed to an increased demand for inflation-resistant assets, fueled by geopolitical tensions, economic uncertainty, and concerns over trade tariffs. This trend aligns with global central banks, particularly those in BRICS nations, acquiring gold at record rates. In 2024, central banks purchased 1,044.6 metric tons of gold, reinforcing gold’s role in diversifying away from U.S. dollar dependency.
Issuance of XAUT is governed by strict procedures, including the use of LBMA-certified gold bars, regular audits, and stringent verification standards. Paolo Ardoino, CEO of Tether, highlighted the strength and resilience of gold as a store of value, especially during economic uncertainty. He emphasized that XAUT provides users with secure, easily transferrable access to physical gold in digital form, backed 1:1 by gold reserves.
Tether also acknowledged the enduring trust in gold among populations facing economic instability, noting its status as a reliable safety reserve. While Bitcoin may represent the future of digital finance, gold remains a trusted asset for many globally.
The release of Tether’s Q1 2025 attestation for XAUT comes after strategic developments for the gold-backed token. Recently regulated in El Salvador, Tether Gold is now operating under a strengthened compliance framework, offering a blockchain-based alternative for secure gold ownership. Tether continues to work closely with law enforcement agencies and is undergoing an independent audit of its reserves by a Big Four accounting firm.
The company is actively engaging with U.S. lawmakers to shape stablecoin regulation and is involved in legislative efforts to formalize the stablecoin sector. With Tether verifying a 7.7-ton gold cache and XAUT reaching a $770 million market cap, the future looks promising for the tokenized gold product.