Tether Gold backed by gold has reached a new milestone, with 7.7 tons of physical gold now securing the stablecoin. According to Tether’s director Paolo Ardoino, unlike competitors, Tether stores real precious metal instead of paper-based certificates. The current market value of the gold reserves stands at $820.8 million.
Tether Gold Backed by Gold: Growing Demand and New Listings
Tether Gold (XAUt) has achieved a capitalization of $816.7 million, meaning that every issued token is fully backed by physical gold. Ardoino emphasized the growing popularity of Tether Gold backed by gold in emerging markets and announced upcoming listings on major cryptocurrency exchanges. This development highlights the rising demand for stable assets tied to real-world value.
Many community members have asked where exactly the gold reserves are stored. While Ardoino did not respond directly, previous statements from Tether confirm that the gold is held securely in Switzerland.
Tether Gold’s Position in the Gold-Backed Crypto Market
Although XAUt is often classified as a stablecoin, it technically differs because its value depends on gold prices, not fiat currencies. Due to the 26% rise in gold prices since early 2025, the value of Tether Gold has also surged relative to the U.S. dollar.
People are increasingly purchasing XAUt to hedge against inflation triggered by global economic tensions, particularly following the trade wars initiated by U.S. President Donald Trump. This makes Tether Gold backed by gold a prominent player among gold-backed crypto assets.
Competitors in the Gold-Backed Crypto Space
Currently, Tether Gold leads the market, but it faces competition. PAX Gold (PAXG), issued by Paxos and stored in London, ranks second with a market cap of $787.2 million. GoldPro Token (GPRO) holds third place with a significant gap, at $150.5 million in capitalization.
The success of Tether Gold backed by gold indicates that crypto investors increasingly seek stability by turning to assets tied to traditional stores of value.
