Tether Gold stablecoin XAUT market capitalization reached 770 million, and encryption assets can also be invested in gold.

The world's largest stablecoin issuer Tether has released the first concrete proof of its gold-backed stablecoin XAU₮. As of the end of the first quarter, its gold-backed token has supported 7.7 tons (246,523 ounces) of gold. The gold stablecoin does not require payment of ETF management fees, custodial fees, nor does it incur storage costs and carrying risks associated with gold bars, providing investors with an alternative way to invest in gold.

What is a gold stablecoin?

Gold stablecoin is tokenized gold, which is another investment channel for gold utilizing blockchain technology. Its principle is similar to that of stablecoins, and its price is pegged to gold. It provides investors with another way to invest in gold without having to pay ETF management fees or bear the storage costs and carrying risks of gold bars. The largest issuers of tokenized gold currently are stablecoin issuers Paxos and Tether. According to Paxos' latest report in February, its gold stablecoin PAXG has an issuance of a total of 209,160 troy ounces. Tether, on the other hand, holds 246,523.33 troy ounces of gold stablecoin XAU₮.

Tether's gold stablecoin XAU₮

Tether relocated its headquarters to El Salvador this year and released its first official report on XAU₮.

Tether claims that each XAU₮ Token is backed 1:1 by one troy ounce of physical gold, securely stored in a dedicated vault within world-class facilities in Switzerland. The purchase of gold bars from the global precious metals authority, the London Bullion Market Association (LBMA), is subject to strict controls, including rigorous counterparty selection, verification of gold bar certificates, and regular gold analysis conducted in the presence of auditors. Therefore, the issuance process of XAU₮ is governed by strict procedures and legal frameworks.

As of April 28, 2025, Tether holds 246,523.33 troy ounces of gold stablecoin XAU₮, equivalent to 7.7 tons of gold, estimated at a price of $3,123.57, with a market value of about $770 million.

The growth of Tether Gold in the first quarter was driven by the escalating uncertainty in the global economy, increasing geopolitical tensions, and the growing demand for a store of value against inflation. As investors worry about new international trade tariffs, the market value of gold continues to soar, further confirming gold's role as a hedge in turbulent markets. It is noteworthy that the quantity of inventory reflected in the proof is more important than the price, as the price remains susceptible to fluctuations.

Where to buy gold stablecoin?

Stablecoin issuer Paxos issues PAXG and Tether's XAU₮, both of which can be purchased directly through centralized exchanges or DeFi platforms like Uniswap, allowing cryptocurrency investors to easily invest in gold. The investment amount can be smaller, and there are no custody fees, making it another investment channel.

This article Tether Gold stablecoin XAUT has a market value of 770 million USD, and crypto assets can also be converted to invest in gold, first appeared in Chain News ABMedia.