Tether Reveals XAUT Stablecoin Backed by 7.7 Tons of Physical Gold Stored in Swiss Vaults

Tether Gold Hits $770M Market Cap as Gold Demand Rises Globally and New Regulations Take Effect

Tether’s gold-backed stablecoin, Tether Gold (XAUT), has reached a market capitalization of $770 million as of April 28, following the release of its first attestation under El Salvador’s new financial regulations.

Tether CEO Paolo Ardoino highlighted the growing trend in his post on X: “As central banks continue to stockpile vast amounts of gold, XAUT is poised to become the go-to tokenized gold solution for both individuals and institutions.”

Each XAUT token is fully backed by 246,523.33 ounces—equivalent to over 7.7 tons—of physical gold stored securely in a Swiss vault, Tether confirmed. Each token represents one troy ounce of gold certified by the London Bullion Market Association (LBMA).

To ensure the integrity and transparency of its backing, Tether implements rigorous verification processes, including regular audits and gold bar checks.

This report comes at a time when global demand for gold is reaching new heights as investors seek a safe haven amidst economic instability and growing geopolitical risks. Central banks, particularly those in BRICS nations, have been purchasing gold at an unprecedented rate, with more than 1,044 metric tons being acquired in 2024 alone, according to the World Gold Council.

Gold prices have surged to new highs in 2025, with the metal seeing a 27% increase in value year-to-date. Currently priced at $3,343 per ounce, gold has more than doubled in value since November 2022.

Tether emphasized that unlike other gold-backed digital assets, XAUT is fully backed by physical gold and is subject to regulation, positioning it as a more secure option for investors looking to avoid exposure to “paper gold.”