- Tether’s XAUT token has gained value alongside rising gold prices amid growing global economic uncertainty.
- Tether reported that XAUT reached a record price of $3,423 last week as gold climbed.
- A combination of factors pushed gold prices in 2025 to historic highs.
Tether, the issuer of the world’s largest stablecoin, said in a statement released Monday that it held 7.7 tonnes (246,523 troy ounces) of gold backing its gold-linked token XAUT at the end of the first quarter.
The company said this was the first dedicated attestation specifically for XAUT, which was launched in 2020.
While Tether regularly issues attestations for its USDT dollar stablecoin, the firm noted that XAUT had a market capitalization of $770 million at quarter-end.
“Tether Gold reaffirms its position as the tokenized gold product with the largest market capitalization and one of the safest and most compliant offerings on the market,” the company said.
XAUT performance in Q1
Although Tether’s XAUT token is far less widely used than USDT, it has increased in value in step with rising gold prices as global economic uncertainty has grown.
Market volatility has surged in recent weeks, driven in part by changes to trade policy and broader geopolitical developments.
Gold, traditionally viewed as a stable store of value, rose roughly 8% over the past 30 days, while Bitcoin gained more than 14% in the same period.
Tether noted that XAUT reached a record price of $3,423 last week following the rise in the gold price.
In a press release the company said:
The growth of Tether Gold in the first quarter was driven by rising global economic uncertainty, increased geopolitical tensions and stronger demand for inflation-resistant stores of value.
Each XAUT token is backed 1:1 by a troy ounce of physical gold stored in secure vaults at facilities in Switzerland, the company added.
The performance of gold over the past two years
Gold has mounted a strong rally over the past two years, largely fueled by continued central bank accumulation—especially among BRICS countries seeking to reduce reliance on the U.S. dollar.
According to the World Gold Council’s “Gold Demand Trends: Full Year 2024” report, global official gold holdings stood at 37,755 tonnes at the end of 2024. Central banks increased their reserves by a net 1,044.6 tonnes during the year, including 332.9 tonnes in the fourth quarter alone.
This steady accumulation highlights gold’s strategic role as a store of value, particularly for emerging and developing nations aiming to bolster financial resilience. Gold prices in 2025 climbed to historic levels, driven by central bank purchases, persistent inflation concerns and elevated geopolitical tensions.
Last week the metal briefly touched $3,500 per ounce, marking a notable 32% gain year-to-date before easing slightly; as of today, the price remains up about 26% for the year.