Tether’s gold-backed token XAUT has increased significantly during the first quarter of 2025, the company’s official attestation published on April 28 stated. Every token is equivalent to one troy ounce of physical gold, and the current supply is backed by nearly eight tons of gold stored in Swiss vaults.
Gold Coins Reach Record Prices During Market Fluctuations
By closing on March 2025, market capitalization for XAU would equal $770.0 million, with each token trading for $3,123. Just a couple of weeks later, the price of the token hit a record high of $3,423 on 21st April, reflecting a whopping 9.6% appreciation from the end of the quarter.
“Investors should be more interested in the true gold backing (246,523 ounces) rather than dollar denominations, which simply go up and down with the market,” Tether said.
Tether Reports XAU₮ Grows Amid Shifting Monetary Landscape, Releases its First Attestation for Q1 2025, More Than 7.7 Tons of Physical Gold Backing the Token in Circulation
Read more @tethergold
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— Tether (@Tether_to) April 28, 2025
BRICS Countries Reduce Dollar Holdings, Central Banks Stock Up
The expansion in tokenized gold occurs during a two-year surge in gold prices fueled in part by central bank purchases. According to reports by the World Gold Council, total gold reserves held by the world were 37,755 metric tons as of the end of 2024.
Central banks purchased 1,044 metric tons in that year alone. BRICS countries have been among the largest buyers as they seek to diversify their holdings away from the US dollar.
Economic Uncertainty Pushes Investors To Traditional Safe Havens
Multiple factors pushed investors towards gold in early 2025, Tether reports: increasing economic uncertainty, deteriorating political tensions globally, and the demand for investments that perform well against inflation.
The company reported that the market size of XAUT increased rapidly when investors were concerned about new global trade tariffs. The firm also reported that El Salvador has officially included XAUT in its regulated financial products list.
Tether Highlights Compliance And Security Measures
Tether Gold continues to show the strength and durability of gold as a reserve of value, particularly in uncertain economic times, remarked Paolo Ardoino, CEO of Tether.
The company prides itself on ensuring that XAUT stands apart from the competition through its standards compliance and physical backing. In fact, each and every token has behind it LBMA certified gold bars which are regularly audited.
Tokenization transforms traditional assets such as gold into digital tokens for exchanges across blockchain networks. It allows smaller portions of high-priced assets to be purchased and transferred relatively quickly. Thus gold, which has always been a kind of safeguard from economic distress, fits easily into the new trading model.
Featured image from Unsplash, chart from TradingView
