The company’s official certificate released on April 28 said Tether’s gold medal XAUT saw significant growth in the first quarter of 2025. Each token is equivalent to one ounce of physical gold, and the current supply is backed by nearly eight tons of gold in Swiss safes.
Gold coins reach record prices during market volatility
With the shutdown in March 2025, XAU’s market cap will equal $770 million, with a price of $3,123 per token transaction. Just a few weeks later, the token price hit a record $3,423 on April 21, reflecting a 9.6% appreciation at the end of the quarter.
Image: community.wvu.edu
“Investors should be more interested in real gold support (246,523 ounces) than dollar denominations, and that’s just going up in the market,” Tether said.
Tether reports XAU₮ grows in a changing currency landscape, releasing its first proof of Q1 2025, with more than 7.7 tons of physical gold in circulation tokens
Read more @tethergold 👇
– Tether (@tether_to) April 28, 2025
BRICS countries reduce U.S. dollar holdings, central bank inventories
The expansion of tokenized gold occurred during the two-year gold price increase, partly due to central banks’ purchases. According to the World Gold Council, as of the end of 2024, the total gold reserves held worldwide were 37,755 tons.
That year alone, the central bank purchased 1,044 tons. The BRICS countries are one of the biggest buyers as they try to diversify their shares from the US dollar.
Source: Tether
Economic uncertainty pushes investors into traditional safe havens
Bound Report: A variety of factors push investors into gold in early 2025: growing economic uncertainty, worsening political tensions around the world and good investment demand for opposing inflation.
The company reported that XAUT’s market size increased rapidly when investors were concerned about new global trade tariffs. The company also reported that El Salvador has officially included XAUT on its regulated financial product list.
Tether emphasizes compliance and safety measures
Tether CEO Paolo Ardoino said Tether Gold continues to show the strength and durability of gold as a store of value, especially during uncertain economic times.
The company prides itself on ensuring Xaut passes standard compliance and physical support. In fact, each token has LBMA certified gold bars and is frequently reviewed.
Tokenization converts traditional assets such as gold into digital tokens to communicate across blockchain networks. It allows smaller, high-priced assets to be purchased and transferred relatively quickly. Therefore, gold has always been a kind of protection from economic troubles and is easily adapted to the new trading model.
Featured images from Unsplash, charts for TradingView
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