- Tether’s XAUT token has climbed alongside rising gold prices amid growing global economic uncertainty.
- Tether noted that XAUT reached an all-time high of $3,423 last week, driven by the surge in gold prices.
- Gold prices have risen to historic highs in 2025, driven by a mix of factors.
Tether, issuer of the world’s largest stablecoin, reported that it held 7.7 tonnes, or 246,523 troy ounces, of gold backing its gold-linked token XAUT at the end of the first quarter, the company said in a statement published Monday.
The company said this marks the first official attestation specifically for XAUT, which was launched in 2020.
Regularly issuing attestations for its USDT stablecoin, Tether stated that XAUT had a market capitalization of $770 million at the end of the quarter.
“Tether Gold maintains its position as the tokenized gold product with the largest market capitalization, the safest and most compatible in the market,” the company said.
XAUT performance in Q1
Tether’s XAUT token, while far smaller in popularity than USDT, has gained value alongside the rising gold price amid increasing global economic uncertainty.
Market volatility has spiked in recent weeks, largely attributed to shifts in trade policy and tariff rhetoric.
Gold, traditionally seen as a stable store of value, has risen roughly 8% over the past 30 days. Bitcoin, by comparison, has climbed more than 14% in the same period.
Tether noted XAUT’s record price of $3,423 last week as a reflection of the rally in gold prices.
The company said in a press release that the token’s growth in the first quarter was driven by growing global economic uncertainty, rising geopolitical tensions and increasing demand for inflation-resistant assets.
“The growth of Tether Gold during the first quarter was driven by rising global economic uncertainty, heightened geopolitical tensions and increased demand for inflation-resistant assets.”
Each XAUT token is backed 1:1 by one troy ounce of physical gold, held in dedicated vaults at facilities in Switzerland, the company said.
Gold’s performance over the past two years
Gold has seen a substantial rally over the past two years, largely driven by steady accumulation by central banks, particularly among BRICS countries seeking to reduce reliance on the U.S. dollar.
According to the World Gold Council’s report “Gold Demand Trends: Full Year 2024,” global gold reserves stood at 37,755 tonnes at the end of 2024. Central banks added a net 1,044.6 tonnes to their holdings during the year, with 332.9 tonnes purchased in the fourth quarter alone.
This steady accumulation highlights gold’s strategic role as a store of value, especially for emerging and developing economies aiming to strengthen financial resilience.
Gold prices reached historic levels in 2025, propelled by a combination of central bank buying, persistent inflation concerns and rising geopolitical tensions. The metal briefly touched $3,500 per ounce last week, representing a remarkable 32% gain year-to-date before easing slightly to reflect a 26% increase as of today.