TLDR
- Tether Gold surpassed a $4 billion market valuation and captured 60 percent of the tokenized gold-backed stablecoin market.
- The overall gold-backed stablecoin market grew from $1.3 billion to more than $4 billion during 2025.
- Tether Gold reported holding 520,089.350 fine troy ounces of physical gold to back its XAU₮ tokens on a one-to-one basis.
- Over 409,000 XAU₮ tokens were sold while over 110,000 remained available for sale at the end of Q4 2025.
- Tether Gold Investments increased its fund exposure by 27 metric tons of gold in the fourth quarter of 2025.
Tether Gold has surpassed $4 billion in value and now controls 60% of the tokenized gold-backed stablecoin market, driven by increasing investor demand, geopolitical instability, and all-time-high gold prices.
Tether Gold Leads Issuance and Circulation in the Stablecoin Sector
In 2025, the gold-backed stablecoin market surged from $1.3 billion to more than $4 billion, reflecting increasing institutional interest. Tether Gold (XAU₮) accounted for 60% of this market, leading both issuance and circulation of tokenized gold. This growth followed rising concerns about macroeconomic uncertainty and the search for digital safe-haven assets.
Tether confirmed that XAU₮ tokens are backed 1:1 by physical gold stored in secure vaults, providing transparency and trust. By the end of Q4 2025, XAU₮ had 520,089.350 fine troy ounces of gold supporting 520,089.300000 tokens. Tether’s reported market capitalization for XAU₮ reached $2.25 billion, with over 409,217 tokens sold and over 110,871 available for purchase.
Tether Gold Investments boosted its holdings by 27 metric tons in Q4 alone, exceeding most central bank acquisitions in the same period.
“XAU₮ exists to remove ambiguity at a time when confidence in monetary systems is weakening,” said CEO Paolo Ardoino.
He stated that the token must meet the same standards as national reserves, reflecting rising expectations from investors.
Gold Price Surge Pushes On-Chain and Institutional Demand Higher
Spot gold prices peaked at $5,000 per ounce in 2025, signaling high global demand for physical and tokenized gold. This trend continued into 2026, with prices hitting $4,966 per ounce on a recent Friday, following persistent volatility. The World Gold Council said 95% of central banks expect gold reserves to remain stable or increase in 2026.
Gold ETF holdings grew by 397 tonnes in the first half of 2025, hitting a record 3,932 tonnes by November. Institutions and digital-native users increased their exposure to tokenized assets like XAU₮. Blockchain activity also showed growing conversion of stablecoins into gold-backed tokens.
Lookonchain reported that on January 23, a trader named 0x0a5e purchased 843 XAU₮ tokens worth $4.17 million. The trader had transferred over $7 million in USDT to the Bybit exchange before executing the purchase. This move highlighted increased confidence in tokenized gold assets over traditional fiat-based options.
Gold has broken above $5,000!
Trader 0x0a5e bought 843 $XAUT($4.17M) today.
He deposited 7M $USDT into #Bybit and then withdrew 843 $XAUT($4.17M).https://t.co/GCOnVxPC6P pic.twitter.com/VagY1a1XOw
— Lookonchain (@lookonchain) January 24, 2026
Physical Gold and Token Supply Aligned as Confidence in Assets Rises
Tether emphasized that each XAU₮ token is backed by an equal amount of vaulted gold verified on-chain. The company operates under El Salvador’s Digital Asset Issuance Law and adheres to strict asset reporting. These compliance measures helped XAU₮ become one of the most trusted gold-backed digital tokens.
CEO Ardoino said Tether Gold’s growth reflects “a scale that now places the fund alongside sovereign gold holders.”
He stressed the responsibility that comes with managing assets comparable to central bank reserves. Investors now expect gold-backed tokens to match the transparency and standards of traditional gold holdings.
Gold demand rose due to geopolitical shifts, inflation fears, and declining confidence in traditional monetary systems. This accelerated the transition to on-chain stores of value backed by physical reserves. Tokenized gold continues to gain traction as investors diversify away from fiat currencies.
Gold’s price rally in 2025 marked its best yearly performance in decades, climbing over 40% year-on-year. Analysts expect the price to rise another 6% by mid-2026, driven by institutional demand. Goldman Sachs projects a third consecutive year of double-digit gains for gold.
