Tether Gold (XAUt) Surges as Gold Prices Hit Record Highs

Tether Gold Rides Bullion Boom as Central Banks, ETFs Rush to Accumulate

As gold reaches record highs, Tether Gold (XAUt) continues to gain momentum. The digital gold token reflects rising demand from institutions and central banks.

By the end of Q2 2025, Tether Gold held 7.66 metric tons of fine gold, according to an attestation by BDO Italia. This reserve backs over 259,000 XAUt tokens, giving the token a market cap above $800 million.

What Is Tether Gold?

Tether Gold (XAUt) is a blockchain-based token backed by physical gold stored in Swiss vaults. Each token represents one troy ounce of gold. The price stays close to physical gold, which is now trading just under $3,400 per ounce.

XAUt offers the benefits of gold ownership with crypto’s flexibility. It’s portable, divisible, and redeemable — like Bitcoin, but tied to a tangible asset.

Since launching in January 2020, XAUt has expanded to major exchanges like Bybit, Bitfinex, KuCoin, and BingX. It recently became available in Thailand through the Maxbit exchange.

Tether also launched an omnichain version of XAUt via The Open Network (TON), enabling seamless cross-chain transfers.

Gold Demand Surges Amid Global Tensions

While Bitcoin often serves as a digital store of value, physical gold remains the top safe-haven asset. In 2024, global central banks purchased more than 1,000 metric tons of gold — the third straight year at that level, per the World Gold Council (WGC).

“This is not normal,” said Christopher Gannatti, Head of Research at WisdomTree. “For decades, central banks were net sellers. Now they’re stockpiling again.”

Many institutions are following their lead. Gold ETFs saw $38 billion in inflows in H1 2025, adding 397 metric tons to global holdings. That’s the largest gain in five years.

These moves reflect deep concerns about:

Trade tensions, especially under President Trump’s policies
Currency instability
Rising inflation

Economist Peter Schiff warned that inflation could accelerate due to tariffs and supply chain issues. Morningstar’s Preston Caldwell also delayed his forecast for interest rate cuts, citing stubborn price pressures.

XAUt Bridges Old and New Finance

The growth of Tether Gold shows how blockchain can modernize traditional asset investing. XAUt offers secure, direct access to gold without needing legacy institutions.

As global instability grows, and both central banks and investors turn to bullion, XAUt is well-positioned to ride the next wave of gold demand.