Tether Gold tops $2.2B as tokenized bullion market grows amid dollar weakness

Tether said its Tether Gold (XAUt) now represents more than half of the gold-backed stablecoin market, with a total value exceeding $2.2 billion and 520,089 XAUt tokens in circulation at the end of the fourth quarter. The company said each token is backed one-for-one by physical gold held in reserve.

CEO Paolo Ardoino said the investment vehicle that holds the bullion backing XAUt has grown large enough to sit alongside some sovereign gold holders in terms of scale. The announcement came as Comex gold eclipsed $5,000 a troy ounce for the first time, after a year-to-date gain of about 17%.

The expansion of tokenized gold has coincided with rising physical bullion demand as central banks reduce reliance on the US dollar and rebuild reserves. According to the World Gold Council, central banks bought a net 220 tonnes of gold in the third quarter of 2025, and the US Dollar Index fell 9.4% last year before extending its decline this month to its lowest level since September, Bloomberg data shows.

Some analysts warn the dollar's slide may continue. Otavio Costa of Azuria Capital said the dollar has broken below a long-term support trend line and wrote, "The debasement trade is now well understood," adding the next phase could be a broad weakening of the US dollar. Separately, investment strategist Karel Mercx found Bitcoin has so far fallen short as a debasement hedge, leaving gold as the preferred store of value.

Key Topics

Crypto, Tether Gold, Tether, Paolo Ardoino, Comex, World Gold Council