Tether Gold (XAUt), a tokenized asset backed by physical gold and issued by the company behind the USDt stablecoin, is experiencing significant growth. According to a recent attestation report, its physical gold reserves have reached 7.66 tons by the end of the second quarter. These reserves support over 259,000 XAUt tokens in circulation, giving the asset a market value of more than $800 million.
This growth for Tether Gold mirrors a wider trend of increased demand for physical gold, which has hit new record highs this year. Factors such as inflation worries and economic uncertainty surrounding the White House’s tariff policies are driving this demand.
While traditional investors still favor holding physical gold, many institutions are turning to digital alternatives like Tether Gold. For example, a company called Twenty One Capital has announced that its Bitcoin (BTC) reserves have surpassed its initial expectations.
The article highlights that XAUt, which was launched in January 2020, has seen its value increase by 40% over the past year. This is driven by investors looking for a hedge against currency devaluation and inflation. The demand for gold is not limited to individual and institutional investors; central banks have also been actively accumulating it, adding over 1,000 metric tons in 2024 for the third consecutive year.
August 2025, Cryptoniteuae
