Tether’s Gold-Backed XAUT Hits $770M, Anchored by 7.7 Tons in Swiss Vault

Tether’s Gold-Backed XAUT Hits $770M, Anchored by 7.7 Tons in Swiss Vault

Surge in Demand for Safe-Haven Assets Boosts Tether Gold Amid Global Unrest

Tether’s gold-backed stablecoin, Tether Gold (XAUT), has reached a market capitalization of $770 million, fueled by investors seeking refuge from rising geopolitical tensions and inflationary pressures. According to the company, each XAUT token is fully backed by physical gold — 7.7 tons stored securely in a dedicated Swiss vault.

The announcement, delivered through Tether’s first attestation under El Salvador’s new financial regulations, underscores the growing appeal of gold-linked digital assets during times of economic uncertainty.

XAUT: A Gold Standard for Digital Assets?

Tether CEO Paolo Ardoino declared on X (formerly Twitter) that “XAUT is set to become the standard tokenized gold product for the people and institutions,” drawing a direct comparison between XAUT’s mission and the ongoing gold accumulation strategies of global central banks.

The stablecoin’s structure is straightforward: each XAUT token represents one troy ounce of London Bullion Market Association (LBMA)-certified gold. To maintain credibility, Tether says it enforces rigorous controls, including gold bar verification and regular audits.

“Trust is built on transparency,” the company emphasized, positioning XAUT as a physically-backed alternative to “paper gold” products, which are often criticized for lacking direct collateral.

Global Gold Rush Lifts Tether’s Ambitions

The timing of Tether’s announcement is significant. Gold prices have surged 27% year-to-date, with the yellow metal currently trading at $3,343 per ounce. Prices have more than doubled since November 2022, driven by a combination of global instability, persistent inflation fears, and strategic gold buying by central banks, particularly from BRICS nations.

According to the World Gold Council, central banks purchased over 1,044 metric tons of gold in 2024 alone — a clear signal of a fundamental shift in monetary reserves strategy.

In this context, Tether’s move to certify and expand XAUT under a recognized regulatory framework could position the token as a premier digital alternative for institutions and retail investors alike, blending the security of physical gold with the flexibility of blockchain-based assets.