Isabella García
As the price of gold continues to rise amidst ongoing global economic instability, Tether has confirmed that its XAUT token is now backed by nearly eight tons of gold as of the end of the first quarter. This is according to a statement released on Monday.
Tether highlighted that its XAUT token continues to hold the title of being the highest market-cap, most secure, and most compliant tokenized gold product available. The company reported that at the end of Q1, 7.7 tons (or 246,523 ounces) of gold were backing its gold-backed stablecoin, a product launched by Tether in 2020.
This release marks the first official attestation for XAUT specifically, further reinforcing the credibility of Tether’s gold-backed token. While Tether frequently publishes attestations for its popular USDT stablecoin, which is pegged to the U.S. dollar and boasts a supply nearing $148 billion, this new release focuses on the gold-backed offering.
At the end of Q1, XAUT had a market capitalization of $770 million, underscoring the growing prominence of this gold-backed cryptocurrency.
Rising Gold Prices Boost XAUT Token’s Value
Though not as widely adopted as USDT, XAUT has seen a significant increase in value as the price of gold continues its upward trend due to global uncertainty. Recently, the markets have experienced heightened volatility, largely influenced by President Donald Trump’s tariff policies.
Gold, often regarded as a safe-haven asset, has risen by approximately 8% in the past 30 days. Similarly, Bitcoin, the world’s leading cryptocurrency, has also surged by over 14% in the same period. With the price of gold continuing to climb, Tether reported that XAUT hit its highest-ever price of $3,423 just last week.
1:1 Gold Backing for Each XAUT Token
Each XAUT token is fully backed 1:1 by one troy ounce of physical gold, which is securely stored in a dedicated vault located within world-class facilities in Switzerland, as confirmed by Tether.
