- Tether expands XAU₮ with 7.7 tons of gold, strengthening digital safe-haven appeal.
- XAU₮ market cap hits $770M as investors seek gold-backed digital assets.
- Global gold demand surges, driving tokenized asset growth amid economic uncertainty.
Tether has expanded its physical gold holdings by more than 7.7 tons to reinforce the backing of its tokenized gold product, XAU₮. The move, disclosed in Tether’s first regulatory attestation for Q1 2025, highlights the growing global demand for stable, inflation-resistant assets.
With mounting geopolitical tensions, fears of new trade tariffs, and persistent global financial uncertainty, Tether’s latest gold acquisition reinforces XAU₮ as a digital solution for those seeking security amid volatile markets.
Each XAU₮ token remains backed 1:1 by a troy ounce of LBMA-certified gold stored securely in Switzerland, emphasizing Tether’s commitment to compliance, transparency, and operational integrity.
Related: Tether’s Pitch To DC: We Help Keep US Dollar Strong Globally
XAU₮ Emerges as a Leading Digital Gold Investment
XAU₮ now holds a market capitalization of $770 million, with each token priced at $3,123.57 as of the end of Q1 2025. This robust strong performance reflects rising interest in tokenized assets backed by real-world commodities.
Unlike other gold tokens, which often carry operational risks due to regulatory gaps, XAU₮ ensures verifiable gold backing and strong legal frameworks. Besides providing individual and institutional investors a stable exposure to gold, XAU₮ now also holds regulatory recognition in El Salvador, further boosting its credibility.
Moreover, XAU₮ has reached an all-time high of $3,423 as of April 21, 2025, a 9.6% increase from the end of the first quarter. Consequently, XAU₮ stands out not only as a hedge against inflation but also as a modern bridge between traditional wealth preservation and blockchain-based financial innovation.
Global Trends Boost Demand for Gold-Backed Tokens
Central banks, particularly across BRICS nations, continue accumulating gold reserves to reduce reliance on the U.S. dollar. In 2024 alone, central banks added more than 1,044 metric tons of gold globally.
Related: Why Did Tether Just Destroy Another $1.8 Billion Worth of USDT?
Tether’s expansion of XAU₮ taps directly into this trend, offering a blockchain-powered way for investors and emerging markets to access the enduring strength of gold through a fully-backed digital asset.
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