Tether Reveals 7.6 Tons of Gold Backing XAUT, Solidifying Its Tokens Market Position

The company Tether announced that at the end of the second quarter, nearly 250,000 «gold» stablecoins (XAUT) were in circulation. This marks the second official validation of the asset launched in 2020.

XAUT is a «stablecoin» pegged to the value of a troy ounce of gold based on London Good Delivery standards. According to the company’s report, its market capitalization has surpassed $814 million, with backing of 7.6 tons, slightly down from the previous quarter’s figure of 7.7 tons.

The issuer has already sold XAUT worth $617 million. As of the end of June, the company reported an unrealized profit of $197 million.

The token is listed on exchanges such as Kraken, KuCoin, and Bitfinex, enabling investors to access precious metals without the need for physical ownership. Holders have the option to redeem their coins for gold stored in Swiss vaults.

Tether highlighted the growing popularity of the «gold» stablecoin, which is bolstered by a 27% increase in gold prices since the beginning of the year. At the time of writing, gold is trading at $3,354.

«Digital gold assets like XAUT are increasingly viewed as a vital tool for hedging investment portfolios,» the issuer stated.

In the meantime, preparations for entering the U.S. market are underway «in full swing,» noted Tether CEO Paolo Ardoino in a Bloomberg interview on July 24. He mentioned that details of the strategy will be revealed in the coming months.

The company aims to obtain the status of a foreign issuer of «stablecoins» and to secure a reserve audit from one of the «Big Four» firms. This step is essential to comply with the recently enacted GENIUS Act in the U.S.

It’s worth noting that in June, Tether-affiliated entity Tether Investments acquired a 31.9% stake in the gold mining company Elemental Altus Royalties.