tl;dr
Tether Gold (XAUt) approaches a $1.5 billion market cap, backed by 966 physical gold bars. Rising gold prices, investor demand for safe-haven assets, and Tether's expansion into tokenized gold highlight a seismic shift in digital finance.
**Tether Gold Nears $1.5 Billion Market Cap as Digital Gold Demand Surges**
Tether Gold (XAUt), the gold-backed digital token issued by stablecoin leader Tether, is rapidly approaching a $1.5 billion market capitalization, signaling a growing shift toward tokenized assets in the global gold market. According to recent data, XAUt’s market cap stands at $1.46 billion, underpinned by 966 physical gold bars totaling 11,693.4 kilograms. This milestone reflects both the rising value of gold and the increasing appeal of digital alternatives for investors.
The token’s total minted supply amounts to 375,572.25 ounces of gold, with 261,961.71 ounces—valued at approximately $1.01 billion—currently in circulation. The remaining 113,610.54 ounces are available for purchase, highlighting the token’s liquidity and accessibility. XAUt’s performance mirrors a broader gold rally, as the spot price of gold recently hit an all-time high of $3,896.49, marking its seventh consecutive weekly gain.
Analysts attribute this surge to heightened investor demand for safe-haven assets amid fears of a prolonged U.S. government shutdown and expectations of Federal Reserve interest rate cuts. As traditional gold holdings face limitations in tradability and accessibility, digital representations like XAUt are gaining traction. Investors are increasingly viewing tokenized gold as a more efficient way to participate in the market, with XAUt appreciating nearly 46% over the past year and 10% in the last month.
Tether’s ambitions in the gold sector extend beyond XAUt’s success. The company is reportedly raising at least $200 million for a new Digital Asset Treasury Company (DATCO), focused on tokenized gold. Partnering with Antalpha—a firm linked to Bitcoin hardware maker Bitmain—DATCO aims to expand institutional participation in the space. This venture builds on Tether’s prior collaborations with Antalpha, including a June 2023 equity investment and expanded services for collateralized lending and vault solutions.
These initiatives allow investors to redeem XAUt tokens for physical gold bars, reinforcing the token’s real-world value. Tether has also diversified into the gold industry by investing over $200 million in Toronto-listed Elemental Altus and engaging with other mining and royalty companies.
CEO Paolo Ardoino has long emphasized gold as a critical hedge against economic uncertainty, alongside Bitcoin and land. As of June, Tether held over $8.7 billion in gold on its balance sheet, underscoring its commitment to the asset.
With XAUt now among the top 100 cryptocurrencies by market cap, Tether’s strategic moves signal a bold expansion into tokenized commodities. As digital gold adoption accelerates, the intersection of blockchain and traditional assets is reshaping how investors navigate markets—and Tether is leading the charge.