Tether Gold Nears $1.5 Billion Market Cap Amid Rising Demand for Tokenized Gold

Tether Gold (XAUt), the gold-backed token issued by stablecoin leader Tether, is rapidly approaching a $1.5 billion market capitalization as investors flock to digital representations of precious metals. According to the company’s latest data, Tether Gold’s market cap stands at approximately $1.46 billion, backed by 966 gold bars weighing 11,693.4 kilograms. The total minted supply of XAUt is 375,572.25 ounces, with 261,961.71 ounces—valued around $1.01 billion—currently in circulation and 113,610.54 ounces still available for sale.

This surge mirrors gold’s record-breaking rally, with spot prices recently reaching an all-time high of $3,896.49, marking seven consecutive weeks of gains. Analysts attribute this to investors seeking safe-haven assets amid growing concerns over a potential U.S. government shutdown and expectations of Federal Reserve rate cuts. As gold prices soar, tokenized versions like XAUt have gained traction, offering greater liquidity and accessibility than traditional bullion.

Over the past year, Tether Gold has appreciated by nearly 46%, including a 10% rise in the last month, cementing its place among the world’s top 100 cryptocurrencies by market cap. Tether is also doubling down on its gold strategy, working with Antalpha—a firm linked to Bitcoin mining giant Bitmain—to raise over $200 million for its new Digital Asset Treasury Company (DATCO). The initiative will focus on expanding institutional access to tokenized gold and holding Tether’s XAUt tokens.

Tether’s broader push into the gold sector includes significant investments, such as a $200 million stake in Toronto-listed Elemental Altus and talks with other global mining and royalty firms. CEO Paolo Ardoino emphasizes that Bitcoin, gold, and land remain Tether’s ultimate hedges “against incoming darker times.” As of June, the company held over $8.7 billion in gold reserves—solidifying its role at the forefront of the digital gold revolution.