Tether Gold’s Report Shows Over 7.7 Tons of Physical Gold Backing on XAU₮ 

• Tether Gold’s XAU₮ reserve holds 7.7 tons of gold.
• XAU₮ remains the most compliant and secure tokenized gold asset available.
• Tether Gold grows as global uncertainty boosts demand for safe assets.

A recent statement by Tether Gold showed that over 7.7 tons of physical gold backs Tether Gold’s (XAU₮) circulating supply, with the stablecoin now under regulatory watch in El Salvador.

Each troy ounce is stored in a vault in one of Switzerland’s world-class facilities. London Bullion Market Association (LBMA) gold bars are acquired under strict protocol, including verified certificates, rigorously screened counterparty, and periodic gold assays conducted by auditors, which are physically reserved.

By the end of the first quarter of 2025, the report notes that the price per XAU₮ token reached $3,123.57 when the market capitalization of Tether Gold reached $770 million. The last quarter’s end saw the token hitting an all-time high price of $3,423 on April 21, 2025, a 9.6% increase over the quarter.

Surge Driven by Global Uncertainty and Economic Pressures

In the first quarter of 2025, due to escalating geopolitical tensions and economic uncertainty globally, the adoption of XAU₮ has taken a notable rise. Tether cited investor fear surrounding newly imposed international trade tariffs as a reason for the increased demand, reinforcing gold’s long-standing power as a hedge during volatile market conditions. 

However, Tether said that the most significant strength factor was the amount of inventory underlying the tokens, more than 246523 ounces. This is a broader sentiment amongst institutional and retail investors who want to keep a foot in physical assets as they become less trusting of fiat currencies.

Tether CEO Paolo Ardoino reiterated the company’s commitment to security and transparency. 

“We bring physical gold to users in a digitized format — secure, easy to transfer and backed 1:1 by fully held gold reserves – which is why we call them XAU₮,” he said.

The report cites World Gold Council data showing that worldwide gold reserves stood at 37,755 metric tons at the end of 2024. These major countries in the BRICS system are fighting dollar dependency. This is also a global reallocation of reserves strategy. Gold is essential to ensure national wealth safety and reduce vulnerability to any possible economic sanctions or currency instability.

Tether believes the tokenized gold offering solves a significant market gap, especially in emerging economies where the asset has traditionally been a popular hedge against inflation and political risk. XAU₮ offers a modern alternative that does not depart from the fundamentals of physical gold ownership in these regions.

Regulatory Progress and Expanding Blockchain Integration

The release of the attestation was the first audit for Tether Gold under El Salvador’s new regulatory framework, and was more than confirming physical gold reserves. This development is a significant advance for using tokenized real-world assets in regulated jurisdictions. It represents the first stage in the improvement of getting tokenized and real-world assets of such notable qualities notarized in existing monetary standards.

In addition, Tether has expanded XAU₮ availability to other blockchain ecosystems by adding the token to USD₮ on The Open Network (TON). The move fastens onto the firm’s strategy of having Tether products across numerous blockchains, and today, Tether products operate on over 15 blockchains such as Ethereum, Solana, Polygon, and Avalanche.

Paolo Ardoino was thrilled with this expansion. He said the company’s overall goal with Tether is to provide open financial infrastructure for the whole blockchain universe. He added, ‘We stand behind TON’s desire to have an open and decentralized internet and borderless financial system.’

Tether Gold as a Lifeline in an Unpredictable World

At the same time, conventional financial arrangements are being reevaluated more broadly, and the growing demand for tokenized gold reflects this. The crumbling economic landscape and central banks’ unprecedented accumulation of gold reserves are leading digital assets like XAU₮ to become an indispensable means of protecting individual and institutional wealth.

Despite maintaining its support for Bitcoin’s longer-term potential as a revolutionary financial instrument, Tether remains aware that many people around the globe still consider gold a hedge against inflation. In a hyperinflation region and a place of continued instability, a gold-backed asset XAU₮ to the compliant, secured, and transparent, gives financial lifelines.

XAU₮, in contrast to noncompliant or paper gold-backed products, represents verifiable legal and operational assurances, and users hold claims to actual, entirely stored physical gold and not unsecured promissory notes, Tether stresses. By being a trusted bridge between traditional asset reliability and blockchain-driven efficiency, the token functions as such.