Tether, the biggest stablecoin issuer in the world, has shared its first official report for Tether Gold (XAU₮), its token backed by gold.
The report, released at the end of Q1 2025, states that XAU₮ is backed by over 7.7 tons of gold, establishing it as the biggest tokenized gold product in the market.
The token is regulated by El Salvadoran law, making its value more comprehensible and safe. According to the report, 246,523.33 troy ounces of gold are safely deposited in Swiss vaults, backing XAU₮ on a 1:1 ratio.
As of publication time, XAU₮ was trading at $3,123 per token and thus had a total worth of $770 million. The token reached its recent peak at $3,423 on April 21, 2025, when demand for gold from around the globe surged during uncertain times in the economy.
Paolo Ardoino, the CEO of Tether, emphasized that the token is safe. He stated, “XAU₮ enables users to have access to the stability of physical gold in digital form.” The company highlighted that the value of XAU₮ is entirely backed by real gold reserves. This makes it a reliable option for investors who seek security amidst uncertain times.
XAU₮ is gaining attention as more individuals globally are demanding gold. One of the reasons is that central banks, particularly those in the BRICS nations, are increasing gold reserves to hedge against inflation and reduce dependence on the U.S. dollar.
The World Gold Council stated that in 2024, the central banks bought more than 1,000 metric tons of gold, and this helped drive gold prices up by 2024. In 2025, gold has been doing great, beating the S&P 500 by 32.6% year to date. Analysts observed that gold prices have gone up by 26.5%, but the S&P 500 has dropped by 6.1%.
Tether’s focus on XAU₮ is not simply providing a safe-haven asset for investors. The company is also targeting emerging markets where people are subject to currency devaluation or political instability.
Ardoino said, “XAU₮ is secure, easy to transfer, and fully backed by physical gold reserves on a one-to-one basis.” This provides those in these markets with access to a stable, digital representation of gold.
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