Tether, the world’s largest stablecoin issuer, has released its first official attestation for Tether Gold (XAU₮), its gold-backed token, marking a significant milestone in the cryptocurrency and precious metals sectors.
The Q1 2025 report reveals that XAU₮ is backed by 7.7 tons of gold, equating to 246,523.33 troy ounces of the precious metal securely stored in Swiss vaults. This makes XAU₮ the largest tokenized gold product on the market, with a 1:1 backing ratio for each token. Regulated by El Salvadoran law, the token’s value is designed to be stable and secure.
As of the report’s release, XAU₮ was trading at $3,123 per token, bringing its market capitalization to $770 million. The token briefly reached its peak of $3,423 on April 21, 2025, driven by a surge in global demand for gold during uncertain economic conditions.
Tether’s CEO, Paolo Ardoino, emphasized the safety and stability of XAU₮, stating that it offers users access to physical gold in a digital form. With a total value fully backed by gold reserves, XAU₮ is seen as a secure investment option, particularly in uncertain financial climates.
The growing global demand for gold, especially as central banks, particularly those in BRICS nations, increase their gold holdings, has boosted the appeal of XAU₮. According to the World Gold Council, central banks purchased more than 1,000 metric tons of gold in 2024, contributing to a rise in gold prices. In 2025, gold has outperformed the S&P 500, up 26.5%, while the S&P 500 has fallen by 6.1%.
Tether’s focus on XAU₮ aims to provide a safe-haven asset for investors, particularly those in emerging markets facing currency devaluation or political instability. Ardoino assured that XAU₮ is not only secure but also easy to transfer, offering a stable digital version of gold for those in need of a reliable store of value.
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