tl;dr
Tether Gold (XAUT) surpassed $2 billion in market value, driven by rising gold prices and institutional demand. The token, backed by 11.6 tons of Swiss gold, saw its value jump from $1.44 billion to $2.1 billion in a week. CEO Paolo Ardoino called it a breakthrough for tokenized assets, coinciding w...
**Tether’s Gold-Backed Token Surpasses $2 Billion in Market Value, Cementing Leadership in Tokenized Assets**
Tether’s tokenized gold asset, Tether Gold (XAUT), has achieved a significant milestone, surpassing $2 billion in market value and solidifying its position as the leading tokenized gold asset globally. This surge underscores growing institutional and retail interest in blockchain-based representations of physical assets, particularly in times of economic uncertainty.
By the end of Q3, Tether Gold’s market capitalization reached $1.44 billion, but the token quickly surged to nearly $2.1 billion within the following week. This rapid growth highlights the increasing demand for gold-backed digital assets, which combine the stability of physical gold with the efficiency of blockchain technology.
Managed by TG Commodities S.A. de C.V. in El Salvador, XAUT is backed by 375,572.297 fine troy ounces of physical gold reserves, equivalent to over 11.6 tons. These reserves are stored in Switzerland under London Good Delivery standards, ensuring their authenticity and quality. Each XAUT token is issued on a 1:1 basis with the underlying gold, providing investors with a transparent and secure way to own gold in digital form.
Tether CEO Paolo Ardoino emphasized the significance of this achievement, stating, *“Tether Gold proves that real-world assets can thrive on-chain without compromise. With gold prices at all-time highs and institutional interest in tokenized assets growing, XAUT represents the future of asset ownership, where physical security meets digital freedom.”*
The surge in XAUT’s value coincides with a broader rally in gold prices. Driven by persistent inflation and geopolitical tensions, gold reached an all-time high of $4,379 per troy ounce on October 17th. While the price has since pulled back to $3,952, it has still recorded a 3.10% increase over the last month and a substantial 42.42% rise year-to-date.
This development highlights the evolving role of tokenized assets in modern finance. By leveraging blockchain technology, Tether Gold offers a bridge between traditional commodities and digital ecosystems, appealing to both investors seeking diversification and those interested in the potential of decentralized finance (DeFi). As demand for secure, transparent, and accessible asset ownership grows, projects like XAUT are poised to play a pivotal role in shaping the future of global markets.