Tether Gold Backed by 375,000 Ounces of Bullion in Switzerland

Tether Holds 11.6 Tons of Gold in Swiss Vaults

Tether said its tokenized gold product, XAUT, was backed by more than 375,000 ounces of physical gold—roughly 11.6 tons—as of Sept. 30. The bars are stored in Switzerland, the company said in a statement. Each token represents one fine troy ounce of gold and is issued by TG Commodities under El Salvador’s digital asset framework.

The disclosure offers a rare look into the reserve assets behind one of the world’s largest tokenized commodities. The reserves are audited and correspond to a blockchain-based supply, giving investors a digital claim on physical gold.

Market Value Hits $2.1 Billion

XAUT’s market capitalization has surged to $2.1 billion in October, up from $1.4 billion in the third quarter. The rise tracks the rally in global gold prices, which climbed to around $4,500 per ounce amid inflation pressures, geopolitical uncertainty, and central bank purchaseing.

The growth also reflects stronger demand from retail investors in emerging markets, according to Tether CEO Paolo Ardoino. “We’ve viewn a surge in interest from users in countries with unstable local currencies,” Ardoino told CoinDesk last week. “Tokenized gold gives them a way to preserve value and move funds across borders rapidly.”

Investor Takeaway

Tokenized Gold Gains Traction

Tokenized gold allows investors to hold a blockchain-based representation of physical gold without taking delivery or managing storage. The tokens can be transferred through crypto wallets, making them easier to trade than physical bullion or even traditional platform-traded funds.

The product appeals to investors in countries where financial infrastructure is limited or where citizens face capital controls. It also enables instant settlement and fractional ownership, reducing the barriers to gold investing. “For many people, XAUT is their first exposure to digital commodities,” Ardoino said in a separate interview earlier this year.

Tether launched XAUT in 2020 and has steadily expanded its reserves as gold prices and digital-asset adoption rose. The company is also the issuer of USDT, the world’s largest stablecoin by market capitalization, with more than $115 billion in circulation. Its expansion into gold-backed assets reflects a broader move toward tokenizing traditional commodities.

Outlook

Meanwhile, XAUT’s growth may continue as investors viewk inflation hedges beyond fiat-backed stablecoins. Tokenized metals have grown into a $2.8 billion niche market in 2025, led by Tether and Paxos. Rising gold prices and the integration of tokenized assets into DeFi protocols have reinforced interest among both retail and institutional holders.

Still, questions remain over transparency in the auditing process and redemption procedures for large holders. Tether said it maintains full reserves and provides proof-of-assets through third-party attestation, but critics have called for more detailed disclosures.

For now, the company’s bet on gold appears to be paying off. As inflation and geopolitical risks persist, XAUT’s mix of stability and accessibility is drawing users far beyond the traditional bullion trade.

Investor Takeaway