Gold Hits Record High as Tether Reports Gold-Backed Token Is Growing Faster Than USDT
Tether, traditionally focused on dollar-backed stablecoins like USDT, is seeing accelerating growth in its gold-backed product, Tether Gold (XAUT). As of December 31, Tether had issued 375,000 XAUT tokens—a 38% increase from the prior quarter, outpacing USDT’s growth by a factor of five. XAUT’s market value surged from $677 million a year ago to $2.64 billion, reflecting heightened investor interest as gold reached a record price above $5,100 per ounce. Tether CEO Paulo Ardoino stated XAUT was intended to provide certainty amid concerns over inflation and government debt. Each XAUT is backed by physical gold stored in Swiss vaults. Tether sold 173,400 XAUT in Q4 2023, over triple its volume from the previous six months, equating to $882 million in gold exposure. XAUT now ranks as the 50th largest cryptocurrency by market cap, ahead of rival PAX Gold. Meanwhile, Tether is also planning to launch a US-regulated stablecoin, USAT, to comply with new legal standards. Tether’s attestations remain reviews rather than full audits, which the company has pledged to conduct in the future.
