Tether’s XAUT token, which is backed by physical gold, has recently released its first official attestation. The attestation reveals that XAUT is backed by 246,523.33 ounces of gold, equivalent to over 7.7 tons. This announcement comes at a time when the token is priced at $3,123.57 per token, with a total market capitalization of $770 million. XAUT reached an all-time high of $3,423 on April 21, showing a 9.6% increase since the end of the first quarter.
Tether has positioned XAUT as a leading product in the tokenized gold sector, citing its market size, security standards, and regulatory compliance. The release of the attestation is seen as a significant step in enhancing transparency and attracting both institutional and retail investors to the project.
The demand for gold has been on the rise due to global instability, leading to increased interest in XAUT. Tether noted that economic uncertainty, geopolitical risks, and fears of trade barriers have driven investors towards safer assets, contributing to the growth of XAUT’s market cap.
Gold itself has performed exceptionally well, outpacing the S&P 500 by 32.6% year-to-date. Gold prices have surged by 26.5% this year, while the S&P 500 has seen a decline of 6.1%. Central banks around the world are also increasing their gold holdings, with China doubling its gold reserve share to 7.1% since early 2023.
Tether CEO Paolo Ardoino has revealed plans to expand XAUT’s presence, particularly in emerging markets. He emphasized the security and transferability of physical gold in digital form, backed 1:1 by fully held gold reserves. This expansion aligns with Tether’s commitment to providing financial tools that combine traditional assets with blockchain technology.
Overall, Tether’s XAUT token continues to gain momentum in the tokenized gold sector, attracting investors with its transparency, security, and backing by physical gold reserves. The company’s strategic plans for expansion into emerging markets suggest a promising future for XAUT as it aims to replicate the success of USDT in a new asset class.