Tether’s tokenized gold product, XAUT, has reached a market capitalization of over $2 billion in October, representing a significant increase from the third quarter’s $1.4 billion. This surge is attributed to the rally in global gold prices and investor interest in tokenized gold as an inflation hedge. Tether disclosed its reserves are backed by more than 375,000 ounces of physical gold, roughly equivalent to 11.6 tons, held in Swiss vaults. The company states these assets are audited and correspond to a blockchain-based supply, providing investors with a digital claim on physical gold.
This rare glimpse into the reserve assets behind Tether’s tokenized commodities offering offers transparency and allows for a more comprehensive understanding of XAUT’s growth.