Tether's Tokenized Gold XAUt Hits $1B, Leading Market
Tether, the company behind the popular stablecoin USDT, has made a significant move into the gold market. On October 1, 2025, Tether's tokenized gold product, XAUt, crossed the $1 billion milestone, solidifying its position as the largest such product on the stock market today. This development is part of Tether's broader strategy to expand beyond its core stablecoin business.
XAUt, which represents physical gold stored in Swiss vaults, offers several advantages over traditional gold investments. Each token can be traded on blockchain networks like Ethereum, making it easier to buy and sell than physical gold bars. Additionally, holders can redeem their tokens for actual gold. This ease of trading and divisibility is driving interest in tokenized gold products.
Tether's focus on gold sets it apart from its competitors. Paxos Gold (PAXG), its main competitor, hit $1 billion in value a month earlier but differs in regulation, reporting, and blockchain usage. Tether's gold treasury is part of a larger plan that includes investments in Bitcoin mining, payments, energy, and artificial intelligence, with a total of $8.7 billion worth of gold on its balance sheet.
Tether is also leveraging its partnership with Antalpha Platform Holding, connected to Bitmain Technologies, which produces 82% of the world's Bitcoin mining equipment. Through Antalpha's RWA Hub, people can borrow money using their XAUt tokens as collateral. This expanded partnership follows Tether's acquisition of an 8.1% stake in Antalpha. Additionally, Tether is reportedly trying to raise money at a $500 billion valuation, reflecting the growing interest in digital asset treasury companies, with over 80 such companies launched in 2025 following Strategy's model.
Tether's $200 million treasury to buy and hold large amounts of XAUt signals a significant commitment to the tokenized gold market. As real-world assets like gold become easier to trade and use in financial products on blockchains, Tether's move could pave the way for further innovation and investment in this space.
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