Tether Gold Secures $770 Mn in Shine
As demand for safe-haven assets grows, Tether Gold’s verified reserves position it as a credible digital alternative to traditional gold investment.
Tether has released its first attestation report for Tether Gold (XAU₮), confirming that over 7.7 tons of physical gold back its tokens. The audit, conducted by BDO Italia, reveals that Tether Gold's total market value has surpassed $770 million.
Tether Gold, launched in 2020, operates on a straightforward premise: each token represents ownership of one fine troy ounce of physical gold stored in Swiss vaults. The recent attestation verified that 246,523.33 fine troy ounces of gold were held in custody as of March 31, 2025.
With gold prices currently hovering around $3,123 per ounce, this equates to approximately $770 million in total market capitalisation — making Tether Gold the second-largest gold-backed stablecoin behind PAX Gold.
Investors are increasingly turning to safe-haven assets amid persistent inflation concerns globally.
Several economic factors are driving interest in gold-backed stablecoins today.
As inflation rates remain elevated across many economies, investors seek assets that preserve purchasing power.
Ongoing geopolitical tensions have increased demand for stable, safe-haven assets.
Concerns about fiat currency weakness have pushed investors toward traditional stores of value.
According to the World Gold Council, central banks purchased 1,044.6 metric tons of gold in 2024, with BRICS nations leading the charge away from US dollar dependence.
Notably, this attestation was conducted under El Salvador's new regulatory framework, where Tether Gold is now a regulated digital asset. This development adds legal certainty to Tether Gold and distinguishes it from competitors.
“Tether Gold continues to demonstrate the strength and resilience of gold as a store of value, especially in times of economic uncertainty,” said Paolo Ardoino, CEO of Tether.
Gold-backed stablecoins offer several advantages compared to physical gold.
Tether Gold can be divided into increments as small as 0.000001 fine troy ounce
Transactions are completed with minimal fees compared to physical gold transport
No need for secure vault arrangements
Interoperability with decentralised finance applications
Here’s a breakdown of how gold-backed stablecoins differ from USD-backed stablecoins.
Tether's troubled history — including past transparency issues and legal challenges — makes this attestation particularly significant. The company has gradually been working to rebuild trust through regular attestations and improved reserve transparency.
Gold-backed stablecoins represent a small but growing segment within the $239 billion stablecoin market. Their rise signals a maturing cryptocurrency ecosystem increasingly focused on bridging traditional and digital finance.
As economies worldwide grapple with inflation and currency concerns, these tokens offer something compelling: the historical stability of gold, combined with the efficiency and accessibility of blockchain technology.