Tether Gold Reaches $770M Market Cap Amid Global Gold Surge and El Salvador Regulation

Tether’s gold-backed stablecoin, Tether Gold (XAUT), has reached a market capitalization of $770 million as of April 28, following the company’s first attestation under El Salvador’s recently implemented financial regulations.

Tether CEO Paolo Ardoino stated on X, “As central banks stockpile massive amounts of gold, XAUT is poised to become the go-to tokenized gold solution for both individuals and institutions.”

Each XAUT token is fully backed by 246,523.33 troy ounces, or over 7.7 tons, of physical gold, securely stored in a Swiss vault. The token is pegged 1:1 to gold, with each XAUT representing one ounce of LBMA-certified gold.

To ensure transparency and trust, Tether applies rigorous controls, including regular gold bar verifications and periodic audits, to maintain the integrity of the backing.

This attestation comes as global demand for gold accelerates, driven by economic uncertainty and escalating geopolitical tensions. Central banks, especially those in BRICS nations, are on track to accumulate more than 1,044 metric tons of gold in 2024, according to the World Gold Council.

Gold has surged in value in 2025, reaching record highs and gaining approximately 27% year-to-date. Currently trading at $3,343 per ounce, the precious metal has more than doubled in value since November 2022.

Tether emphasized that unlike other tokenized gold offerings, XAUT is physically backed by real gold reserves and is fully regulated, making it a more secure option for those seeking to avoid exposure to “paper gold.”