TL;DR
- Tether reported that its gold-backed token, XAUT, has surpassed $2 billion in market value, driven by rising gold prices and the expansion of real-world asset tokenization.
- TG Commodities confirmed that reserves total 375,572 fine troy ounces of gold, equivalent to $1.449 billion.
- XAUT and PAX Gold together account for nearly 90% of the tokenized gold market, valued at around $3.7 billion.
Tether announced that its gold-backed token, XAUT, has exceeded $2 billion in market capitalization, fueled by the surge in gold prices and growing demand for tokenized real-world assets.
The company released its Q3 2025 attestation, confirming that every XAUT unit is fully backed by physical bullion stored in Switzerland under London Good Delivery standards.
According to TG Commodities S.A. de C.V., a company registered in El Salvador under the country’s Digital Asset Issuance Law, as of September 30, reserves amounted to 375,572 fine troy ounces of gold, equivalent to roughly $1.449 billion at quarter-end prices. There were 522,089 tokens in circulation and another 139,751 allocated for sale. Since then, gold’s rally has raised the total backed value to around $2.1 billion — more than double the $850 million recorded in August.
Tether Gold and PAX Gold dominate nearly 90% of the $3.7 billion tokenized gold market. The expansion of these products reflects institutional interest in bringing traditional assets onto blockchain infrastructure — an area the SEC has already identified as a regulatory priority. The growing demand for tokenized gold also stems from persistent inflation, geopolitical tensions, and the surge in central bank gold purchases.
Tether (XAUT): A Hedge Against Fiat Depreciation
Tether CEO Paolo Ardoino stated that XAUT “proves real-world assets can operate on-chain without compromising their backing.” The transparency of reserves and the token’s liquidity reinforce its position as a reliable digital alternative amid fiat currency depreciation.
The rise of tokenized gold is also linked to what analysts call the “debasement trade,” in which investors seek refuge in physical and crypto assets as sovereign debt risks and monetary erosion intensify. However, research firm Capital Economics warned that the current rally may lose momentum if inflationary pressures ease, projecting gold prices to fall back toward $3,500 per ounce by 2026.
Tether has positioned XAUT as a benchmark product in the real-world asset tokenization market, combining security, transparency, and institutional-grade credibility
