Tether’s gold-backed stablecoin, Tether Gold (XAUT), has reached a staggering $770 million in market capitalization as of April 28. This claim is based on the company’s attestation made under El Salvador’s new financial regulations.
- Tether stated that XAUT’s growth has been heavily influenced by rising geopolitical tensions and inflation fears.
- The stablecoin issuer has disclosed the first attestation for XAUT, aligning it with new regulations in El Salvador.
According to Tether, each XAUT token is backed 1:1 by 246,523.33 ounces (over 7.7 tons) of physical gold stored in a Swiss vault. Tether claims it employs rigorous controls, including gold bar verification and regular audits, to uphold the reliability of its backing.
As global investors increasingly view gold as a safeguard against economic uncertainty and geopolitical risks, Tether emphasizes that unlike other tokenized gold products, XAUT is physically backed and regulated, making it a safer alternative for investors concerned about “paper gold” exposure.
“While central banks are stacking up hundreds of tons of gold, XAUT is set to become the standard tokenized gold product for the people and institutions,” said Paolo Ardoino, Tether’s CEO.
“El Salvador’s framework allows us to operate transparently in this shifting monetary landscape."
In 2024, global central banks bought gold at record levels, amassing more than 1,044 metric tons. The price of gold has soared in 2025, gaining approximately 27% year-to-date and currently trading around $3,343 per ounce, having more than doubled since November 2022.
This increase in interest highlights a significant shift in investor behavior, with many favoring XAUT as a more reliable gold option.
