TLDR
- Tether held 375,572 fine troy ounces (11.6 tons) of physical gold as of September 30, 2025.
- XAUT surpassed $2 billion in market capitalization, more than doubling from $850 million in August.
- Q3 attestation verified that every XAUT token is backed by physical bullion stored in Switzerland, meeting London Good Delivery standards.
- Tether Gold and PAX Gold control nearly 90% of the $3.7 billion tokenized gold market.
- Gold prices reached record highs of $4,500 per ounce in October 2025, driving growth in token valuation.
Tether’s gold-backed token XAUT surpassed $2 billion in market capitalization during the third quarter of 2025. The growth came as gold prices reached record highs and demand for tokenized real-world assets increased. Tether released attestation documents confirming full backing of every XAUT unit with physical gold stored in Switzerland.
XAUT Reserves Reach 375,572 Fine Troy Ounces
TG Commodities S.A. de C.V. reported that Tether held 375,572 fine troy ounces of gold as of September 30. The company operates under El Salvador’s Digital Asset Issuance Law and manages XAUT reserves. This amount equals approximately 11.6 tons of physical bullion stored according to London Good Delivery standards.
The reserves represented roughly $1.449 billion at quarter-end gold prices. However, the token’s backed value has since grown to around $2.1 billion. This marks more than double the $850 million valuation recorded in August 2025.
Tether maintained 522,089 tokens in circulation at the end of Q3. The company also allocated another 139,751 tokens for future sale. Gold’s continued rally through October pushed prices to $4,500 per ounce, lifting XAUT’s total market cap.
Tether Gold Dominates Tokenized Asset Market Share
Tether Gold and PAX Gold control nearly 90% of the $3.7 billion tokenized gold market. The expansion reflects institutional interest in blockchain-based traditional assets. The SEC has identified tokenized assets as a regulatory priority for oversight and compliance.
Central banks have increased gold purchases as inflation and geopolitical tensions persist. Retail investors in emerging markets have driven much of XAUT’s recent demand growth. Tether CEO Paolo Ardoino stated that XAUT “proves real-world assets can operate on-chain without compromising their backing.”
The token offers investors blockchain-based gold ownership without the complexities of custody. Storage and logistics challenges associated with physical bullion are eliminated through the use of tokenization. Investors in emerging markets gain access to gold exposure without relying on traditional derivative products, such as ETFs.
Price Rally and Future Outlook
Gold prices climbed to new record highs throughout the third quarter. Investors sought refuge in physical and crypto assets as sovereign debt risks increased. The trend analysts refer to as the “debasement trade” has accelerated as concerns about fiat currency depreciation mount.
Tether has positioned XAUT as a benchmark product in real-world asset tokenization. The token combines security features with transparent reserve reporting for institutional clients. Liquidity and full backing reinforce its role as a digital alternative to traditional gold holdings.
Capital Economics projects that gold prices may decline to around $3,500 per ounce by 2026. The research firm warns that the current rally could lose momentum if inflation pressures ease. These projections suggest potential headwinds for the growth of the tokenized gold market.
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