Tether Gold Hits $800M Market Cap with 7.66 Tonne Gold Reserve

Tether Gold (XAUt) was backed by 7.66 tonnes of fine gold by the end of Q2, underpinning over 259,000 tokens in circulation. Gold bullion traded near $3,400 per troy ounce, and XAUt’s price mirrored this performance, rising roughly 40% over the past year.

The token launched in January 2020 and trades on major exchanges, including Bybit, Bitfinex, BingX and KuCoin. Tether Gold recently expanded into Thailand via Maxbit exchange.

Global central banks added over 1,000 metric tonnes of gold reserves in 2024, marking the third consecutive year surpassing that milestone. Most central banks expect further increases over the next 12 months, according to industry surveys.

Institutional investors poured billions into gold exchange-traded funds during the first half of 2025. The period recorded $38 billion in net new investments, the largest ETF inflows in five years, boosting ETF holdings by nearly 397 metric tonnes of bullion.

Economist Peter Schiff cited inflationary pressures from tariffs and supply-chain disruptions as key drivers of bullion demand. Morningstar senior economist Preston Caldwell noted that expectations for Federal Reserve rate cuts have been delayed in response to inflation trends.

Tether Gold operates as part of Tether’s ecosystem of asset-backed tokens. The company’s reserves undergo regular attestations by BDO Italia to verify the physical bullion backing each token. Each XAUt token represents ownership of one troy ounce of gold stored in Swiss vaults.

The token recently launched an omnichain version on The Open Network (TON) to expand accessibility across different blockchain networks. Tether Gold competes with other tokenized gold products, including PAX Gold and DigixDAO’s gold tokens.

Gold prices have reached multiple record highs in 2025, driven by central bank purchases, ETF inflows, and ongoing economic uncertainty. The 40% price appreciation has directly benefited XAUt holders who track the underlying bullion performance