Tether, a global stablecoin firm, has published its first official attestation report for the first quarter of 2025 and disclosed that Tether Gold (XAU₮) has witnessed astronomical growth, with more than 7.7 tons of physical gold backing the XAU₮ in circulation.
In its independent auditor’s report, the company says that apart from XAU₮ being regulated in El Salvador, it remains “the most secure and compliant tokenized gold product in the cryptocurrency market.”
How does XAU₮ work?
Each XAU₮ token is backed 1:1 by one troy ounce of physical gold, securely stored in a dedicated vault within world-class facilities in Switzerland.
The purchase of London Bullion Market Association (LBMA) gold bars—the global authority on precious metals, is subject to stringent controls, including rigorous counterparty selection, verification of gold bar certificates, and periodic gold assays conducted in the presence of auditors. The XAU₮ issuance process is governed by rigorous procedural and legal frameworks.
On April 21, 2025, XAU₮ reached an all-time high of $3,423, which, according to the attestation report, was up 9.6% from the end of Q1/25, with a $770.0 million market capitalisation.
The Growth
The spike is attributed to inflation and President Donald Trump’s tariff war against several countries, culminating in market uncertainties that pushed investors to opt for inflation-resistant stores of value such as gold. The availability of tokenized gold makes gold even more accessible.
“It is important to note that the quantity of inventory reflected in the attestation is of greater significance than the price, which remains subject to volatility,” the company says.
Recent demand for gold has also been bolstered by persistent accumulation by BRICS nations seeking to diversify away from U.S. dollar dependency.
“This sustained accumulation reinforces the strategic importance of gold as a tool for preserving both national and individual wealth, especially in emerging and developing economies.”
Unlike paper gold backing that could be violate regulations, Tether Gold promotes transparency and verifiable physical backing because it uses blockchain—where everyone sees the movement.
Tokenized gold even came at a time when BRICS nations are debating over what currency to adopt. Even though they are yet to agree on an official one, their plan to do away with the U.S. dollar makes the global monetary landscape more unpredictable.
According to CEO of Tether, Paolo Ardoino, “Tether Gold continues to demonstrate the strength and resilience of gold as a store of value, especially in times of economic uncertainty.”
Regulatory Compliance
While acknowledging the growth so far, the company says it has been achieved by closely collaborating with law enforcement agencies, particularly in the United States, “to ensure the integrity and transparency of its operations.”