- Tether Gold’s physical gold reserves rose 36% from 520,089.350 ounces to 707,747.139 ounces in Q1.
- XAU₮ market value climbed above $3.3 billion by March 31, 2026, according to the reserves report.
- Global Q1 gold demand, including OTC, rose 2% yearly to 1,231 tonnes and reached a record $193 billion.
Tether Gold expanded sharply in the first quarter of 2026 as investors increased exposure to tokenized hard assets. XAU₮ reserves rose 36% quarter over quarter, while market value crossed $3.3 billion by March 31.
Gold demand also reached a record quarterly value as prices stayed elevated and macro risks remained active. Meanwhile, bar and coin demand, ETF inflows, and central bank purchases kept investment demand ahead of weaker jewelry volumes.
XAU₮ Reserves Rise in Q1
TG Commodities said Tether Gold held 707,747.139 fine troy ounces of physical gold as of March 31, 2026. XAU₮ tokens in circulation stood at 707,747.090000, maintaining the 1:1 backing model.
Each XAU₮ token represents one fine troy ounce of physical gold. The reserves are held in Switzerland and meet London Good Delivery standards set by the London Bullion Market Association.
Notably, Tether Gold ended 2025 with 520,089.350 fine troy ounces in reserves. By the end of Q1, that figure had increased by more than 187,000 ounces.
Total market value reached $3,303,805,880. Tokens sold stood at 559,598.640000 XAU₮, while tokens available for sale reached 148,148.450000 XAU₮.
Tokenized Gold Demand Builds
Paolo Ardoino, CEO of Tether, said, “Tether Gold is proving that tokenized commodities can operate with the same seriousness, scale, and reserve discipline expected from major institutional holdings.”
He added, “Gold has always been a trusted asset during periods of uncertainty, but XAU₮ gives it a new form of utility.” His comments linked physical gold exposure with blockchain-based transfer, transparency, and access.
According to the report, XAU₮ tokens are issued only after physical gold bars complete the custodian’s intake procedure. Each token links to specified bars with an identifiable serial number, purity, and weight.
Additionally, a sample of reserve bars undergoes confirmatory testing each quarter by a qualified independent third party. That process supports the reserve reporting model behind the tokenized gold product.
Gold Demand Hits Record Value
Global gold demand, including OTC activity, reached 1,231 tonnes in Q1, up 2% from a year earlier. Higher prices lifted the value of quarterly demand by 74% to a record $193 billion.
Bar and coin demand rose 42% to 474 tonnes, marking the second-highest quarter on record. Asian investors led buying across gold investment products during the period.
However, Jewellery demand volumes fell 23% year over year as record prices weighed on purchases. Even so, Jewellery spending rose 31%, showing that higher prices lifted total expenditure despite lower volumes.
Central banks bought 244 tonnes of gold on a net basis, up 3% yearly. Moreover, gold demand from technology rose 1% to 82 tonnes, supported largely by AI infrastructure growth.
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