Stablecoin issuer Tether has significantly bolstered the reserves for its Tether Gold (XAUT) token, confirming holdings of over 7.7 tons of physical gold.
This disclosure came via the company’s inaugural attestation report specifically for XAUT, adding a layer of transparency to its gold-backed digital asset. The report verifies that Tether possesses sufficient pure gold reserves to support every XAUT token currently circulating in the crypto market.
According to the attestation, the company safeguards 246,523.33 troy ounces of gold, equivalent to more than 7.7 metric tons. “Each XAU₮ token is backed 1:1 by one troy ounce of physical gold, securely stored in a dedicated vault within world-class facilities in Switzerland,” the firm stated, emphasizing the physical nature of the backing.
The release of this report underscores a growing trend in the digital asset space: the tokenization of real-world assets (RWAs) and the increasing demand for verifiable proof of reserves, particularly crucial for asset-backed tokens.
Tether CEO Paolo Ardoino highlighted the increasing popularity of the tokenized gold offering, noting substantial expansion during the first quarter of 2025. He anticipates continued growth driven by rising demand in emerging economies and expects that new exchange listings will further enhance XAUT adoption.
Ardoino elaborated on the strategy: “With XAU₮, we’re offering users the ability to access the security of physical gold in a digital form—secure, easily transferable, and backed 1:1 by fully held gold reserves. It’s part of our broader commitment to building financial tools that combine the best of traditional assets with the efficiency of blockchain technology.”
Despite this substantial investment in gold, Tether maintains a strong conviction in Bitcoin (BTC), calling it “the most forward looking choice for the digital era.” The company remains a major proponent of Bitcoin education and a significant holder, possessing over $8.2 billion worth of BTC at the close of Q1 2025.
The market reflects growing interest in XAUT, with its capitalization exceeding $770 million as of April 28. The token’s price closely tracked gold’s performance, trading near $3,300 and having achieved an all-time high of $3,423 on April 21, 2025.