What happened?
Tether has released its first official attestation for Tether Gold (XAUT) covering Q1 2025, confirming the tokens are fully backed by physical gold. As of April 28, 2025, Tether reported that more than 7.7 tons of gold, equivalent to 246,523.33 troy ounces, are securely backing XAUT tokens. This release confirms that XAUT’s reserves are stored in Switzerland under strict controls and rigorous verification standards.
Who does this affect?
This development primarily affects investors looking for digital assets backed by physical commodities, particularly those seeking inflation-resistant investments. It also impacts financial markets and institutions globally, who may be interested in stablecoins like XAUT as an alternative investment vehicle. Furthermore, emerging market participants and central banks, especially among BRICS nations, may find XAUT attractive due to rising geopolitical tensions and economic uncertainties.
Why does this matter?
Tether Gold’s official attestation could boost investor confidence and contribute to the growing market for gold-backed digital assets. The $770 million market cap of XAUT signifies strong demand for inflation hedges and diversification away from dollar dependency. As global central banks increasingly purchase gold, products like XAUT can become a more significant part of the broader economic strategy, influencing market dynamics in the digital asset sphere.