Tether Gold reaches $770 million market cap amid surging investor interest in precious metal

Tether’s gold-backed stablecoin, Tether Gold (XAUT), has hit a $770 million market cap as of April 28, according to the company’s announcement following its first independent audit.

Each XAUT token is backed by one troy ounce of LBMA-certified gold. Over 246,000 ounces—around 7.7 tons—of the precious metal are securely kept in a dedicated Swiss vault. Tether prioritizes transparency in the project, conducting regular verifications and independent audits to ensure trust in the asset.

Tether CEO Paolo Ardoino has suggested XAUT could emerge as a potential industry standard for tokenized gold products, appealing to individual and institutional investors. This comes at a crucial time, as global demand for the precious metal continues to rise. According to World Gold Council data, central banks bought over 1,044 tons just in 2024, with BRICS nations accounting for the majority of these purchases.

Tether emphasizes that unlike other gold-based digital products, XAUT is physically backed and regulated. The company positions the token as a safe alternative to traditional precious metal holdings.