Tether Gold (XAUT) Surges to $770M Market Cap Amid Global Gold Rush

Tether’s gold-backed stablecoin, Tether Gold (XAUT), has reached a $770 million market capitalization as of April 28, following its first attestation under El Salvador’s financial regulations. Backed 1:1 by 246,523.33 ounces—over 7.7 tons—of physical gold held in a Swiss vault, XAUT continues to gain traction among investors seeking stability.

Each XAUT token represents one troy ounce of LBMA-certified gold. Tether ensures trust through strict verification processes and regular audits of the gold bars. Highlighting growing demand, Tether CEO Paolo Ardoino stated on X that XAUT aims to become the standard for tokenized gold products, offering a more accessible alternative for individuals and institutions.

The attestation comes as gold demand hits historic highs. Central banks, particularly across BRICS nations, have amassed over 1,044 metric tons of gold in 2024 alone, according to the World Gold Council. Investors worldwide are increasingly turning to gold as a hedge against rising geopolitical tensions and economic uncertainty.

Gold prices have surged approximately 27% year-to-date, reaching $3,343 per ounce, more than doubling since November 2022. This rally has further fueled interest in physically-backed assets like XAUT, especially among users wary of "paper gold" risks.

Tether emphasized that, unlike many tokenized gold products, XAUT is both physically backed and regulated, positioning it as a safer and more transparent option in the digital asset space.