Tether’s XAUT token has appreciated alongside the rising price of gold amid increasing global economic uncertainty.
Tether noted that XAUT hit a record high price of $3,423 last week, driven by the rally in gold prices.
Gold prices have surged to historic highs in 2025, fueled by a combination of factors.
Tether, issuer of the world’s largest stablecoin, reported holding 7.7 tons, or 246,523 ounces, of gold backing its gold-pegged token XAUT at the end of the first quarter, according to a statement released Monday.
The company said this marks the first official attestation specific to XAUT, which launched in 2020.
Tether, which regularly issues attestations for its USDT dollar stablecoin, said XAUT had a market capitalization of $770 million at the end of the quarter.
“Tether Gold maintains its position as the highest market-cap, most secure, and compliant tokenized gold product in the market,” the company said.
XAUT’s performance in Q1
Tether’s XAUT token, though far less popular than USDT, has appreciated alongside the rising price of gold amid increasing global economic uncertainty.
Volatility has surged in recent weeks, largely due to President Donald Trump’s tariff policies.
Gold, traditionally viewed as a stable store of value, has gained about 8% over the past 30 days. Bitcoin, meanwhile, has climbed over 14% in the same period.
Tether noted that XAUT hit a record high price of $3,423 last week, driven by the rally in gold prices.
The company, in a press release, stated:
The growth of Tether Gold during Q1 was driven by escalating global economic uncertainty, heightened geopolitical tensions, and a rising demand for inflation-resistant stores of value.
Each XAUT token is backed 1:1 by one troy ounce of physical gold, stored in dedicated vaults within facilities in Switzerland, the company said.
Gold’s performance over the past two years
Gold has staged a major rally over the past two years, driven largely by sustained central bank accumulation, particularly among BRICS nations aiming to reduce dependence on the US dollar.
According to the World Gold Council’s Gold Demand Trends: Full Year 2024 report, global gold reserves stood at 37,755 metric tons at the end of 2024.
Central banks added a net 1,044.6 metric tons to their holdings over the year, with 332.9 metric tons purchased in the fourth quarter alone.
This consistent accumulation underscores gold’s strategic role as a store of value, especially for emerging and developing economies seeking to bolster financial resilience.
Gold prices have surged to historic highs in 2025, fueled by a combination of central bank buying, lingering inflation fears, and mounting geopolitical tensions.
The precious metal briefly touched $3,500 per ounce last week, delivering a remarkable year-to-date gain of 32%, before retreating slightly to reflect a 26% gain as of today.
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