Tether’s Gold Token Sees Surge in Demand, Driven by Market Volatility and Rising Digital Assets

During the third quarter of 2023, as gold prices reached record highs, Tether increased its physical reserves backing XAUT, its tokenized gold product. By September, the company held 375,000 ounces of gold in Swiss vaults. This surge in demand for digital gold fueled XAUT’s market value to $2.1 billion by October. Fueled by concerns about inflation and geopolitical instability, investors have been turning back towards digital assets as a safe haven.