Tether's Gold-Backed Crypto XAUT Hits Record High Amid Investor Surge

Tether's gold-backed token, XAUT, has released its first official attestation, confirming it is backed by over 246500 ounces of gold

Tether's gold-backed token, XAUT, has released its first official attestation, confirming it is backed by over 246,500 ounces of gold, or roughly 7.7 tons.

Priced at $3,123.57 per token with a total market cap of $770 million, XAUT hit an all-time high of $3,423 earlier this month, showcasing a 9.6% gain since the end of the first quarter.

According to a statement by Tether, XAUT is the largest, most secure, and most compliant tokenized gold product in the market. The attestation is part of broader efforts to boost transparency and attract greater interest from both institutional and retail investors.

The token has also benefited from strong global demand for gold, which is being driven by several factors, including geopolitical tensions and fears of economic instability. This is pushing investors toward safer assets like gold — and by extension, XAUT.

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Gold itself has had a standout year, with prices outperforming the S&P 500 by over 32%. Central banks are also ramping up their reserves, with global holdings now at their highest share of international reserves in 26 years. China has been particularly aggressive, doubling its gold reserves since early 2023.

Moving forward, Tether CEO Paolo Ardoino has set his sights on expanding XAUT's reach in emerging markets. He aims to offer the security of physical gold combined with the speed and flexibility of blockchain technology to a broader range of investors.

"We are committed to providing innovative products and solutions that meet the evolving needs of the digital asset ecosystem," said Ardoino.

This development underscores the growing interest in tokenized assets and the potential for integrating physical commodities with blockchain technology. XAUT's journey is a testament to the evolving landscape of crypto and the increasing sophistication of institutional involvement in the sector.

News data source: kdj.com

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