Tether’s Gold-Backed Token XAUT Sees Substantial Growth in 2025
Reviewed and verified by industry-leading experts, our editorial content offers trusted insights into the latest developments in the financial world. Discover how Tether’s XAUT token, backed by physical gold, has surged in value amidst a changing economic landscape.
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Remarkable Surge in XAUT Value During Early 2025
According to Tether’s official attestation released on April 28, 2025, the XAUT token saw a significant increase in value during the first quarter of the year. Representing one troy ounce of physical gold, each token is underpinned by nearly eight tons of gold secured in Swiss vaults.
Gold Prices Soar Amid Market Volatility
By the end of March 2025, XAUT’s market capitalization reached $770.0 million, with tokens trading at $3,123 each. The token price hit a record high of $3,423 on April 21, marking an impressive 9.6% increase from the quarter’s end.
Global Economic Trends Influence Gold Investment
The surge in tokenized gold value coincides with a notable two-year rise in gold prices, largely driven by central bank acquisitions. According to the World Gold Council, global gold reserves totaled 37,755 metric tons by the close of 2024, with central banks purchasing 1,044 metric tons in that year alone. BRICS nations have been key players in this shift, aiming to reduce their reliance on the US dollar.
Investors Turn to Gold Amid Economic Uncertainty
Tether reports that various factors, including escalating economic uncertainties and global political tensions, have prompted investors to turn towards gold as a secure investment. The growing demand for inflation-resistant investments has significantly increased the market size of XAUT. Furthermore, El Salvador has officially added XAUT to its list of regulated financial products.
Emphasizing Compliance and Security in Gold Investment
Tether Gold exemplifies the enduring value of gold, especially during economic instability, noted Paolo Ardoino, Tether’s CEO. The company emphasizes the importance of compliance and physical security by ensuring that each XAUT token is backed by LBMA-certified gold bars, subject to regular audits.
Tokenization is revolutionizing the way traditional assets like gold are traded, allowing for easier and faster transactions through blockchain technology. It makes high-value assets accessible to a broader range of investors, offering a modern avenue for safeguarding wealth against economic downturns.
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