Tether’s Tokenized Gold Reserves Surpass 11.6 Tons Amid Rising Demand
- Tether’s tokenized gold offering, XAUT, was backed by over 375,000 ounces (approximately 11.6 tons) of physical gold as of September 30.
- Each XAUT token is backed 1:1 by a fine troy ounce of gold, with reserves stored in Switzerland.
- XAUT’s market capitalization increased to over $1.4 billion in Q3 as gold prices surged due to inflation and geopolitical instability.
- By October, the market cap reached $2.1 billion, coinciding with gold hitting a price high of $4,500.
- The growth was primarily fueled by demand from retail investors in emerging markets, according to Tether CEO Paolo Ardoino.
The rising interest in tokenized gold reflects a shift towards blockchain-based assets that simplify ownership without the logistical challenges of storing physical bullion. This trend is particularly significant for investors lacking access to traditional financial products like ETFs.
As of September, Tether held more than 11.6 tons of gold backing its XAUT tokens, which have seen their market cap grow significantly amid increasing demand for gold investments.(Source)
