Gold is having a moment again. This time, it is happening on the blockchain.
The global market for gold-pegged stablecoins has surged to $4 billion in value in 2025, up from $1.3 billion earlier in the cycle. At the center of that growth is Tether.
Already the largest issuer of dollar-backed stablecoins, Tether is now expanding aggressively into digital gold. The company says its gold-pegged token, XAUT, now controls nearly 60 percent of the entire gold-backed stablecoin market.
Tether launched XAUT in 2020. Each token represents one troy ounce of physical gold. The gold is stored in Swiss vaults and can be redeemed under specific conditions.
To maintain the 1:1 peg with physical gold, Tether has been buying gold in bulk. The company says this strategy has pushed it into the ranks of the world’s largest gold holders.
By its own admission, Tether now sits among the top 30 gold holders globally. That places it ahead of national reserves held by countries such as Greece, Qatar, and Australia.
In an official statement, Tether said strong global demand for physical gold pushed spot prices above $5,000 per ounce in recent weeks. To meet rising demand and maintain backing, Tether Gold Investments acquired 27 metric tons of gold in the fourth quarter of 2025.
Gold demand has remained elevated worldwide as investors seek protection against inflation, currency volatility, and geopolitical risk. Data from the World Gold Council shows central banks and institutional investors have been steady buyers of gold over the past two years.
Tether Gold metrics and market position
Tether disclosed that it held 520,089.35 troy ounces of gold, or roughly 16.18 metric tons, in reserves as of December 2025.
XAUT is currently ranked 37th on CoinMarketCap’s cryptocurrency index. At the time of writing, the token was trading at $5,261.00 and had more than 25,000 holders.
The stablecoin’s market capitalization stood at $2.30 billion on Wednesday, according to CoinMarketCap data.
The total supply of XAUT is capped at just over 520,000 tokens. Around 440,860 tokens are currently in circulation. This leaves 110,871 tokens available for future issuance.
“Through Tether Gold, we are operating at a scale that now places the Tether Gold Investment Fund alongside sovereign gold holders, and that carries real responsibility,” said Paolo Ardoino in a statement.
Tether’s growing gold exposure has also drawn wider attention. Bloomberg has reported that the company currently holds around 140 tons of gold worth approximately $23 billion. The gold is stored in a high-security nuclear bunker facility in Switzerland.
Digital gold meets traditional finance
Gold-backed stablecoins like XAUT aim to combine the stability of physical gold with the flexibility of blockchain settlement. Analysts say this makes them attractive to investors looking for inflation hedges without relying on traditional custodians.
As demand for alternative stores of value grows, Tether’s expansion into digital gold signals a broader shift. Stablecoins are no longer just about dollars. They are becoming gateways to real-world assets.
For now, Tether is firmly in the lead.
And the race to tokenize gold has only just begun.
