Tether’s gold-backed token Xaut increased significantly in the first quarter of 2025. All tokens correspond to one troy ounce of physical gold, with current supplies being supported by nearly eight tons of gold stored in Swiss safes.
Gold coins reach record prices during market fluctuations
With the closure in March 2025, Xau’s market capitalization will amount to $770 million, with each token transaction trading going for $3,123. Just a few weeks later, the token price hit a record high of $3,423 on April 21, reflecting a whopping 9.6% rating from the end of the quarter.
Image: community.wvu.edu
“Investors should be more interested in true gold support (246,523 oz) than in the dollar denomination,” Tether said.
Tether Reports Xau will be releasing its first proof of Q1 2025, growing amid the changing financial landscape.
read more @tetherGold https://t.co/gm2ngyvfo6
– Tether (@tether_to) April 28, 2025
BRICS countries reduce dollar holdings and expand central bank inventory
The expansion of tokenized gold occurs during a two-year surge in gold prices, partially driven by central bank purchases. According to a report by the World Gold Council, the world’s gold storage capacity was 37,755 metric tons at the end of 2024.
Central Banks purchased 1,044 metric tons that year alone. BRICS countries are one of the biggest buyers as they are trying to diversify their holdings from the US dollar.
Source: Tether
Economic uncertainty drives investors to traditional safe havens
In early 2025, investors pushed investors towards gold, and Tether reported. Increased economic uncertainty, worsening political tensions worldwide, and demand for investments that work well against inflation.
The company reported that Xaut’s market size has increased rapidly, as investors are concerned about new global trade tariffs. The company also reported that El Salvador officially included Xaut in its list of regulated financial products.
Tether emphasizes compliance and security measures
Tether Gold continues to show gold’s strength and durability as a reserve for value, especially in uncertain economic conditions, said Tether CEO Paolo Aldoino.
The company prides itself on ensuring that Xaut is separated from the competition through standard compliance and physical support. In fact, every token has an LBMA certified gold bar that is regularly audited.
Tokenization converts traditional assets such as gold for exchange across blockchain networks into digital tokens. This allows you to purchase and transfer some of your expensive assets relatively quickly. So, gold, which has always been a kind of guardian from financial pain, easily fits into the new trading model.
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