Tether says XAUT stablecoin holds 7.7 tons of gold stored in Switzerland

• Tether’s XAUT token has seen significant appreciation due to the surging price of gold, reflecting a heightened global economic climate.
• Recent reports indicate that XAUT reached an all-time high of $3,423, largely driven by robust gold market performance.
• Gold’s price trajectory has reached unprecedented levels in 2025, propelled by multiple economic factors.

Tether, the issuer of the leading stablecoin globally, has disclosed that as of the end of the first quarter, it holds 7.7 tons (246,523 ounces) of gold to back its gold-pegged token, XAUT.

This announcement marks the first official attestation specific to the XAUT since its inception in 2020, detailing that the token had a market capitalization of approximately $770 million as of the end of the recent quarter.

“Tether Gold maintains its position as the highest market-cap, most secure, and compliant tokenized gold product in market,” the company asserted.

XAUT’s Performance in Q1

Despite being less popular than its counterpart USDT, Tether’s XAUT has gained value in alignment with the rising gold price amidst growing economic instability.

Recent volatility has been propelled by global political tensions, notably heightened by former President Trump’s trade policies.

Gold, often regarded as a safe-haven asset, has appreciated by about 8% over the past month, with Bitcoin following closely with an increase of over 14% in the same timeframe.

XAUT struck a notable price record of $3,423 last week, influenced by an ongoing rally in gold prices.

The company elaborated in a press release:

The remarkable growth of Tether Gold in Q1 was significantly influenced by escalating global economic challenges, raised geopolitical uncertainties, and an increasing appetite for inflation-hedging assets.

Each XAUT token is pegged to one troy ounce of physical gold, securely stored in vaults located in Switzerland, as stated by the company.

Gold’s Performance Over the Past Two Years

Gold has undergone a substantial resurgence in value over the last two years, largely driven by sustained accumulation from central banks, especially those in BRICS nations striving to lessen their reliance on the US dollar.

According to the World Gold Council’s 2024 Gold Demand Trends report, global gold reserves reached 37,755 metric tons by the end of 2024.

Central banks collectively acquired a net total of 1,044.6 metric tons throughout the year, with 332.9 metric tons purchased in the fourth quarter alone.

This ongoing accumulation illustrates gold’s crucial role as a stable asset, particularly for emerging economies that aim to enhance financial robustness.

In 2025, gold prices have soared to historic highs fueled by multiple factors including extensive central bank purchases, persistent inflation worries, and increasing geopolitical tensions.

The precious metal climbed briefly to $3,500 per ounce last week, achieving a remarkable year-to-date gain of 32%, before slightly retreating to reflect a current 26% gain.