Tether Reveals 7.6 Tons of Gold Backing for XAUT Amid Growing Demand for Tokenized Gold

The company Tether announced that by the end of the second quarter, nearly 250,000 gold-backed stablecoins (XAUT) were in circulation. This marks the second official verification of this asset, which was launched in 2020.

XAUT is a «stablecoin» that is pegged to the value of a Troy ounce of gold according to the London Good Delivery standards. According to the company, its market capitalization has surpassed $814 million. The gold backing amounts to 7.6 tons, slightly lower than the previous quarter’s figure of 7.7 tons, as reported earlier.

The issuer has already sold XAUT worth $617 million, and by the end of June, the company’s unrealized gains stood at $197 million.

The token is available on exchanges such as Kraken, KuCoin, and Bitfinex, enabling investors to gain exposure to the precious metal without needing to physically own it. Holders can exchange their coins for gold stored in Swiss vaults.

Tether noted that the demand for gold-backed stablecoins is increasing, fueled by a 27% rise in the price of the precious metal this year. At the time of writing, gold is trading at $3354.

“Digital assets like XAUT are increasingly being viewed as vital tools for hedging investment portfolios,” stated the issuer in a recent announcement.

Meanwhile, preparations for entering the U.S. market are progressing «steadily,» as mentioned by Tether CEO Paolo Ardoino in a Bloomberg interview on July 24. He indicated that details regarding this strategy would be revealed in the coming months.

The company plans to establish itself as a foreign issuer of stablecoins and undergo auditing of its reserves by one of the «Big Four» firms. This is necessary to comply with the recently passed GENIUS Act in the U.S.

It is worth noting that in June, Tether-affiliated Tether Investments acquired a 31.9% stake in the gold mining company Elemental Altus Royalties.