Gold Prices Soar as Tether Gold Sees Explosive Growth
The price of gold has reached an all-time high, surpassing $5,000 per ounce for the first time. This historic milestone comes alongside news of growing interest in tokenized gold assets like Tether Gold (XAUT), which recorded impressive growth during the fourth quarter of 2025.
Key Highlights From Tether’s Quarterly Report
According to a report by accounting firm BDO Italia, Tether minted 375,000 Tether Gold (XAUT) tokens as of December 31, representing a 38% increase from the previous quarter. In contrast, Tether’s flagship stablecoin, USDT, grew by just 7% during the same period, indicating a clear shift in investor sentiment towards gold-backed assets.
Tether Gold’s tokens are backed by physical gold stored securely in Swiss vaults. As of Monday, the value of XAUT assets surpassed $2.64 billion. The report highlighted that Tether sold approximately $882 million worth of XAUT during Q4 2025, tripling the amount sold in the prior six months. This surge highlights the increasing demand for tokenized gold as a hedge against economic uncertainties.
Why Investors Are Turning to Gold-Backed Tokens
Gold has long been seen as a reliable store of value, particularly in times of economic turmoil. With rising concerns about global inflation and government debt, more investors are seeking alternatives to fiat-backed assets like USDT. In response, Tether CEO Paulo Ardoino described XAUT as a solution to address today’s waning confidence in traditional monetary systems.
Additionally, Tether has branded 1/1,000th of a troy ounce of gold through its new term, “Scudo,” to encourage easier adoption and utility for its XAUT tokens. Investors are now embracing gold as both a store of value and as a cutting-edge alternative method of payment within the blockchain economy.
How Tether Gold Measures Up to Competitors
Tether Gold competes closely with PAX Gold, another stablecoin linked to physical gold, which holds a $2 billion market valuation. However, Tether Gold has successfully outpaced its competitors, becoming the 50th largest cryptocurrency by market cap over the past year.
Products like Tether Gold are particularly enticing to investors who want exposure to commodities without the logistical challenges of storing physical gold. For instance, one solution to consider is investing directly in Tether Gold through platforms like Bitfinex (note: always do your own research before investing in cryptocurrencies).
What’s Next for Tokenized Gold?
The rise in tokenized gold is part of a larger shift toward diversifying asset-backed cryptocurrencies. Analysts predict continued demand as stablecoin issuers like Tether explore new opportunities through gold-backed tokens. Meanwhile, market speculation continues to center on gold’s further projected growth, with some forecasts aiming for prices above $5,400.
As interest in tokenized commodities expands, Tether’s gold-backed stablecoins could play an increasingly significant role in reshaping how global investors access precious metals.
