The company claims that $770 million worth of Tether XAUT tokens are backed by 7.7 tons of gold stored in a Swiss vault.
Tether has released the first report on the certification of its Tether Gold product under new El Salvador regulations amid rising global demand for gold.
Tom Carreras, AI Boost | Edited by Steven Alpher Updated April 28, 2025, 5:33 PM Published April 28, 2025, 4:33 PM
Important points:
- Tether Gold (XAUT) has reached a market cap of $770 million and is backed by 7.7 tons of gold stored in a Swiss vault, it is reported.
- According to Tether, XAUT's rise is driven by geopolitical instability and growing inflation concerns.
- The stablecoin issuer has submitted the first attestation of XAUT in accordance with El Salvador's regulatory requirements.
Gold stablecoin Tether Gold (XAUT) reached a market cap of $770 million on April 28, according to the company's first report under El Salvador's financial regulations.
“While central banks are hoarding hundreds of tons of gold, XAUT should become the benchmark tokenized gold product for both individuals and institutions,” Tether CEO Paolo Ardoino said on X.
According to Tether, the token is backed 1:1 by 246,523.33 ounces (over 7.7 tons) of physical gold stored in a specialized Swiss vault.
Each XAUT token represents one troy ounce of LBMA-certified gold. Tether said it has strict controls in place, including gold bar verification and regular audits, to maintain trust in the token’s backing.
The confirmation comes at a time when global investors are increasingly turning to gold as a hedge against economic instability and rising geopolitical risks.
According to the World Gold Council, central banks, especially in the BRICS countries, are buying gold in record volumes, accumulating more than 1,044 tonnes in 2024 alone.
The yellow metal has hit several record highs in 2025 amid an ongoing rally that has seen its price rise some 27% year-to-date. It currently trades at $3,343 an ounce, more than double its November 2022 level.
Tether emphasizes that, unlike other tokenized gold products, XAUT is physically backed and regulated, making it a safer option for users concerned about the risk of “paper gold.”
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