- Tether’s XAUT stablecoin, backed by 7.7 tons of gold, hits a $770M market cap in 2025.
- XAUT’s 7.7 tons of gold reserves ensure 1:1 backing, boosting transparency in digital assets.
- Rising gold prices push XAUT to an all-time high of $3,423, reflecting increased demand for the asset.
Tether announced on April 28, 2025, that its XAUT gold token represented physical gold, with 7.7 tons stored in Swiss vaults at the end of Q1 2025. Tether issued its inaugural official report on XAUT reserves with this announcement, following its launch in 2020.
XAUT tokens represent physical segments of gold, which get securely stored within Swiss vaults at a one-to-one ratio. As stated by Tether, the dedicated report increases stability for its gold-pegged stablecoin by offering verified information about asset reserves for users.
Tether Releases First Dedicated Attestation for XAUT
According to Tether, the 7.7 tons of gold reserves represent approximately 246,523 ounces of the precious metal. This dedicated attestation for XAUT follows Tether’s established practice of releasing regular reports for USDT, which remains the largest stablecoin by market capitalization with nearly $148 billion in supply. At the end of the first quarter, XAUT reached a market cap of $770 million, reflecting steady growth since its launch.
Tether stated that XAUT maintains full physical backing, positioning it as the token with the highest market capitalization in the digital asset sector. The company aims to enhance user trust through the independent verification of reserves.
By releasing specific data related to XAUT’s gold holdings, the company continues its broader strategy to support asset-backed digital products with greater transparency.
Gold Price Increase Boosts XAUT’s Value
The attestation process now takes place at a time when gold prices show their highest marks so far. Recent geopolitical conflicts, coupled with market uncertainties, have led to an 8% increase in gold value over the last 30 days. Bitcoin, the world’s largest cryptocurrency, also experienced a 14% price gain during the same period.
The market remained volatile, so Tether announced XAUT achieved its highest token value at $3,423 during the preceding week. The achievement of an all-time high reflects a growing market demand for stability through tangible assets. The company explained that they securely store their gold reserves at world-class vaults located in Switzerland for direct asset protection. Digital asset users trust this framework because it instills confidence in them when they want to access gold through digital means.
Tether Strengthens Focus on Asset-Backed Products
Tether utilizes its first XAUT-specific attestation to advance its strategy, which centers on asset-backed stablecoins. XAUT attestation marked a significant step for the company in delivering dependable digital investment products to global investors through verifiable, transparent, and secure solutions.
XAUT tokenization efforts by Tether prepare the company to fulfill the rising demand in the digital economy for alternative value stores. Future system upgrades will provide regular updates regarding the reserve data of both XAUT and USDT.
