Tether Verifies $770 Million worth of Gold Reserves for Q1 amidst surging interest in non-USD Stablecoins
Gold-Backed Stablecoin Tether Gold Takes Off
In a groundbreaking move, Tether unveiled its first official attestation for the gold-backed stablecoin, Tether Gold (XAUt), in Q1 of 2025. This revolutionary digital asset recently surged to a monumental milestone, hitting a market cap of $817 million, as of April 28, 2025. The company's report, released under El Salvador's new regulatory framework, reveals each XAUt token is backed 1:1 by physical gold, with over 7.7 tons (246,523.33 ounces) of LBMA-certified gold housed in a Swiss vault.
Striving for Integrity and Trust with Tether Gold
Tether asserts that stringent controls have been applied, including gold bar verifications and periodic audits, to uphold the faith in the token's backing. Tether CEO, Paolo Ardoino, declared on X, "XAUt opens up the digital gold opportunity to the hundreds of millions of people already using USDt." Ardoino posted on X that with rising global instability and central banks stockpiling gold, Tether XAUt presents a simple and alternative method for everyday users to own digital gold.
Soaring Gold Demand Fosters Tether Gold's Momentum
The launch and development of Tether Gold coincide with the escalating demand for gold. Central banks, particularly within the BRICS nations, amassed a staggering 1,044 metric tons of gold in 2024, as per the World Gold Council. Gold prices skyrocketed, witnessing a gain of approximately 27% in 2025 and currently trading at around $3,322.39 per ounce as of April 29, 2025, more than double their price since November 2022.
Tether Gold (XAUt) is priced at $3,316.99, signifying a 1.06% increase over the past 24 hours. The market cap stands at around $819.1 million, also up by 1.07% in 24-hour trading volume. This trend shows a consistent activity as interest in the gold-backed stablecoin asset grows amid rising gold prices globally amid economic uncertainty.
Seeking Solid Investments in Turbulent Markets
With rising geopolitical tensions and inflation fears due to President Donald Trump's tariffs, investors are increasingly turning to physical assets like gold as a hedge against market unpredictability. Unlike other tokenized gold offerings, Tether Gold offers a unique selling point – it is fully backed by physical reserves and regulated, providing an alternative to "paper gold" products and appealing to users seeking secure and innovative investments. While Tether Gold reinforces its presence in the tokenized commodity sector, broader shifts are also emerging across the stablecoin market. Tether co-founder, Reeve Collins, recently revealed that USD-backed stablecoins currently dominate the sector, and other currencies and asset-backed stablecoins are beginning to challenge that dominance.
Future: A Melting Pot of Stablecoin Choices
Collins highlighted that users will soon have a diverse range of stablecoin options backed not just by fiat currencies but by a mix of tokenized assets. He emphasized the growing momentum toward mainstream stablecoin acceptance. Collins also pointed to the launch of the World Liberty Financial (WLFI) stablecoin, which is backed by Trump. This stablecoin was launched on Binance Smart Chain and Ethereum in March. The WLFI tokens are not yet tradable, but their existence indicates a significant endorsement of stablecoin technology at the highest political levels.
- Tether Gold (XAUt) is backed 1:1 by physical gold, with each token worth approximately $3,316.99, as revealed in its Q1 2025 attestation.
- The market cap for Tether Gold stands at around $819.1 million, surging to this milestone in April 2025, amid rising gold prices and global economic uncertainty.
- In an effort to uphold the faith in the token's backing, Tether has implemented stringent controls, including gold bar verifications and periodic audits.
- Tether Gold presents an alternative method for everyday users to own digital gold, as its launch and development coincide with the escalating demand for gold and gold price hikes.
- In response to the increasing demand for stablecoin choices, industry experts predict a diverse range of stablecoins backed by various tokenized assets will soon become available.
- The World Liberty Financial (WLFI) stablecoin, partially backed by President Donald Trump, serves as a significant endorsement of stablecoin technology, indicating a shift towards mainstream acceptance.
