Financial Times Style
Tether Expands Gold-Backed Token Reserves as Demand Surges
29/10/2025
Tether’s gold-backed token XAUT has surpassed $2 billion in market value after the company expanded its physical gold reserves to 11.6 tons, reflecting growing investor appetite for tokenized assets.
The reserves, equivalent to around 375,000 ounces of gold, are held in Switzerland and back tokens issued 1:1 by TG Commodities, operating under El Salvador’s digital asset regime.
The jump in XAUT’s valuation coincides with record gold prices and a surge in retail investment from inflation-conscious markets. “We’re seeing consistent inflows from investors seeking secure, yield-free assets that still offer digital portability,” said CEO Paolo Ardoino.
Gold’s rally to $4,500 per ounce helped propel the token’s capitalization from $1.4 billion in Q3 to above $2 billion by late October. Tether’s tokenized gold provides investors exposure to the metal without the logistical or regulatory hurdles of traditional markets.
