Is Tether Gold Becoming More Popular?

Tether Gold (XAUt), a blockchain-based token backed by real gold, has become an increasingly popular choice among those looking for the security of gold with the convenience of digital assets. 

As global economic instability intensifies and gold prices hit new records, XAUt appears to be gaining ground not only among crypto investors but also among institutions and central banks.

Tether Gold: A Digital Bridge to Physical Gold

Tether Gold (XAUt) is a tokenized asset backed by physical gold. Each token represents one troy ounce of gold stored in a Swiss vault. 

As of the end of the second quarter of 2025, Tether reported holding 7.66 tons of fine gold, supporting a total circulation of over 259,000 XAUt tokens. These reserves give Tether Gold a market capitalization of over $800 million.

The price of Tether Gold closely tracks the spot price of physical gold, which is currently trading near $3,400 per ounce. 

Over the past year, the value of XAUt has surged by approximately 40 percent, following the same upward trend as physical gold. 

This performance makes it an appealing option for investors looking to combine traditional assets with blockchain flexibility.

Read also: Is Gold Price Really Rising Ahead of Jerome Powell’s Speech? Here's the Analysis

A Safe-Haven Asset for Uncertain Times

Gold has long been viewed as a reliable store of value during times of economic and geopolitical turbulence. With inflation pressures rising and central banks reconsidering monetary policies, demand for physical gold is on the rise. 

The World Gold Council reported that central banks purchased more than 1,000 metric tons of gold in 2024, marking the third consecutive year of significant buying.

These purchases are part of a broader trend of financial institutions turning back to gold. According to WisdomTree’s global head of research, Christopher Gannatti, this behavior is unusual compared to previous decades when central banks were net sellers of gold. 

Now, they are accumulating it as a safeguard against currency devaluation and political instability.

Read also: Blockstream CEO Adam Back Gold Price Crash, Bullish on Bitcoin's Future\

Institutional Interest Boosts Gold and XAUt

The gold rush is not limited to central banks. Institutional investors have poured billions into gold-related exchange-traded funds (ETFs), with inflows reaching $38 billion in the first half of 2025 alone. This trend has driven demand for all gold-related assets, including Tether Gold.

XAUt offers a distinct advantage, it provides blockchain-based access to gold without the logistical challenges of storing and securing physical bullion. 

It is also divisible and tradable on several major cryptocurrency exchanges such as Bybit, Bitfinex, BingX, and KuCoin. More recently, it expanded its presence into Southeast Asia through Thailand's Maxbit exchange.

Tether has further increased accessibility by integrating XAUt with The Open Network (TON), offering an omnichain version that enhances liquidity and usability across different platforms.

Read also: Are Gold Prices Starting to Consolidate? Looking at Current Sentiments

The Role of Inflation and Global Tensions

Inflation has re-emerged as a central concern in the United States and globally. Tariff-related cost increases, coupled with rising commodity prices, have led economists to revise their expectations for interest rate adjustments. 

Preston Caldwell, senior US economist at Morningstar, recently noted a shift in policy expectations, with fewer anticipated rate cuts due to persistent inflation.

Economist Peter Schiff has also pointed to inflation as a key reason behind gold’s current popularity. With fiat currencies facing increasing pressure, gold has regained attention as a hedge against value loss.

As investors seek out assets that can hold their worth regardless of political or financial changes, Tether Gold benefits from its dual nature. It carries the trust of physical gold ownership while offering the efficiency of a digital token.

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FAQ

What is Tether Gold? 

Created by Tether, the company behind the USD-pegged USDT stablecoin, Tether Gold (XAUt) is a stablecoin whose value is tied to physical gold.

What is crypto XAUt? 

Tether Gold (XAUt) is a cryptocurrency backed by physical gold. Each XAUt token represents ownership of one troy ounce of physical gold stored in secure vaults. This token offers investors a digital way to own gold.

What is the price of Tether Gold? 

The current live price of Tether Gold is $3,370.35 USD, with a 24-hour trading volume of $22,886,009 USD. The XAUt to USD price is updated in real-time. Tether Gold has decreased by 0.62% in the last 24 hours. Its current CoinMarketCap ranking is #93, with a market capitalization of $830,872,321 USD.

Is Tether Gold trustworthy? 

Yes, Tether Gold has emerged as a reliable, compliant, and modern alternative to traditional gold ownership. This is especially true given the current environment of increased gold accumulation by countries like those in BRICS, discussions around commodity-backed digital currencies, and decreasing trust in traditional fiat currencies.

How does Tether Gold make money? 

Tether, the issuer of the USDT stablecoin, aims to keep its value at one-to-one with the U.S. dollar, with $159 billion in circulation. The company makes money by investing the dollars it receives in exchange for the tokens it issues into assets like U.S. Treasuries.