TLDR:
- Tether Gold’s market capitalization rose to over $2 billion as gold prices climbed to $3,858.96 an ounce in late September.
- The token is fully backed by 375,572 fine troy ounces of gold held in Swiss vaults under strict compliance.
- Rising global demand for real-world asset tokenization pushes Tether Gold’s reserves past 11.6 tonnes in Q3 2025.
- TG Commodities SA confirms that XAU₮ remains one of the most reliable on-chain gold products worldwide.
Gold-backed crypto HAS reached another milestone. Tether gold (XAU₮) crossed the $2 billion mark as prices of the yellow metal surged to record highs.
The token’s growth comes amid a renewed push toward real-world asset (RWA) tokenization in financial markets. Investors, fed up with unstable fiat currencies, seem to be turning back to hard assets, only this time, on-chain.
According to information shared by Tether (@Tether_to) and a press release from the company on October 28, Tether Gold’s total market value has almost doubled since the third quarter of 2025. The product, backed by 1:1 physical gold reserves in Switzerland, remains one of the most sought-after digital commodities.
Each XAU₮ represents one fine troy ounce of gold, held in full compliance with London Good Delivery standards.
Gold prices drive Crypto’s real asset boom
At the end of September 2025, TG Commodities SA, the registered issuer of Tether Gold, reported that total reserves reached 375,572 fine troy ounces. With gold trading at $3,858.96 an ounce at the time, the token’s market cap exceeded $1.44 billion. Within weeks, that number climbed closer to $2.1 billion as prices increased.
The company confirmed that the product maintains a perfect 1:1 gold backing, offering transparency through open on-chain verification. This structure has strengthened investor confidence during a period characterized by inflationary concerns and changing global monetary policy.
Rising gold demand from central banks and institutional buyers has also fueled this growth. In response, Tether’s management pointed out that the XAU₮ token demonstrates how physical assets can be successfully bridged with blockchain technology. The company described it as proof that tokenized ownership of real assets can be safely scaled.
Tokenized gold strengthens its role in crypto markets
As tokenization gains traction, Tether Gold has positioned itself at the forefront of a growing movement that connects traditional stores of value with decentralized infrastructure. The company stated that over 11.6 tonnes of physical gold is now backing XAU₮, making it one of the largest tokenized asset projects in circulation.
Market analysts who track real asset products said Tether Gold’s expansion bolsters confidence in the concept of digital commodities. The token provides investors with a way to move value globally while maintaining exposure to physical gold, without intermediaries or logistical constraints.
While other platforms are exploring tokenized treasuries and real estate, Tether’s consistent 1:1 model has set a benchmark for reliability in RWA markets. The project’s continued growth reflects the broader trend of investors using blockchain for stability and transparency.
