Tether Gold gains traction with institutions and retail investors as record bullion prices revive demand for onchain safe havens.
Tether said today that it is at the forefront of tokenized gold products as demand for onchain exposure to physical bullion continues to grow.
Its gold-backed stablecoin XAU₮ has surpassed $2.2 billion in market capitalization, representing more than half of the total tokenized gold market, which now stands slightly above $4 billion.
The growth reflects rising interest from both institutional and retail investors seeking safe-haven assets that remain fully onchain.
Gold prices have surged rapidly since late September 2025, with bullion recently trading near the $5,100 per ounce level. Geopolitical uncertainty, currency concerns, and reserve diversification have driven renewed demand for hard assets. Silver has also posted repeated record highs over the same period.
As of the end of 2025, Tether Gold reported more than 520,000 fine troy ounces of physical gold backing an equivalent number of XAU₮ tokens on a one-to-one basis. The reserves are held in Switzerland in compliance with London Bullion Market Association standards.
Tether has also become a significant institutional gold accumulator through its tokenization strategy. According to IMF data and a late 2025 Jefferies report, the firm now ranks among the top 30 global gold holders, surpassing several sovereign nations.
During the fourth quarter of 2025 alone, Tether added roughly 27 metric tons of gold, exceeding the purchases of most individual central banks over the same period.
