#How is Tether Leading in Tokenized Gold Products?
Tether has established itself as a leader in tokenized gold products. The increasing demand for onchain access to physical bullion is evident as Tether's gold-backed stablecoin, XAU₮, has now surpassed a market valuation of $2.2 billion. This figure makes up more than half of the entire tokenized gold market, which recently rose above $4 billion.
This remarkable growth indicates a heightened interest from both institutional and retail investors who are searching for safe-haven assets available entirely onchain. Particularly, since late September 2025, gold prices have witnessed a significant increase, with bullion trading around the $5,100 per ounce mark. This surge is largely driven by geopolitical uncertainty, concerns over currency stability, and a need for diversification in reserves. Silver has similarly reached new record prices during this timeframe.
As of the close of 2025, Tether Gold has reported possessing over 520,000 fine troy ounces of physical gold, corresponding to an equal number of XAU₮ tokens at a one-to-one ratio. These reserves are securely stored in Switzerland, adhering to the rigorous standards of the London Bullion Market Association.
#How Has Tether Grown Its Institutional Gold Holdings?
Beyond being a leading player in the market, Tether has also become a crucial institutional gold accumulator through its innovative tokenization strategy. Recent data from the International Monetary Fund (IMF) and a report from Jefferies in late 2025 show that Tether now ranks among the top 30 global holders of gold, overtaking various sovereign nations in terms of stockpiles.
In the fourth quarter of 2025 alone, Tether added around 27 metric tons of gold to its reserves, surpassing the acquisitions of most individual central banks within the same timeframe. This continued accumulation positions Tether prominently in the evolving landscape of gold investment, setting a precedent for future engagements in the sector.