Tether’s gold-backed token, XAUT, crossed $3.3 billion in market value during the first quarter of 2026, as persistent macroeconomic uncertainty pushed more investors toward safe-haven assets.
The stablecoin giant said in its quarterly update, published May 4, that the physical gold reserves backing XAUT climbed 36% quarter over quarter, reaching 707,747.139 fine troy ounces as of March 31, 2026, up from 520,089.350 fine troy ounces at the end of 2025.
Gold demand pushes XAUT to new high
The increase in market value comes as record gold demand drives investors toward scarce and liquid assets, with ongoing wars, geopolitical tensions, inflation concerns, and uncertainty over the Federal Reserve’s interest-rate path strengthening gold’s safe-haven appeal.
For Tether Gold, that shift has supported appetite for blockchain-based exposure to physical gold, giving investors a product that combines 1:1 gold backing with easier transferability, broader accessibility, and faster settlement.
By the end of the quarter, total XAUT tokens in circulation stood at nearly 707,747, bringing the product’s total market value to $3.3 billion, with Tether saying each token remains backed 1:1 by one fine troy ounce of physical gold.
Tokenized gold gains institutional weight
The latest figures suggest that investors are starting to use gold in new ways, not only as a store of value but as an asset they can access, move, and settle more easily through digital markets while still relying on physical reserves.
Tether said XAUT is designed to give holders direct ownership of physical gold while preserving the speed, accessibility, and ease of transfer associated with digital assets, a model that Paolo Ardoino, Tether’s chief executive, said shows tokenized commodities can operate with the reserve discipline and scale expected from major institutional holdings.
“Gold has always been a trusted asset during periods of uncertainty, but XAUT gives it a new form of utility,” Ardoino said. “It allows people and institutions to hold direct exposure to physical gold while benefiting from the transparency, portability, and accessibility of blockchain-based assets.”
Tether brings XAUT to payments
To extend XAUT’s utility beyond holding and transferring, Tether recently unveiled a gold-backed Visa card, in collaboration with Dubai-based neobanking platform Fasset, aiming to bring tokenized gold into everyday payments.
The card would allow users to spend through Visa’s merchant network while earning XAUT cashback and automatically converting spare change from purchases into the token.