The world’s largest stablecoin issuer, Tether, has released its first formal attestation for its gold-backed token, Tether Gold (XAU₮).

Notably, this token is under El Salvador’s regulatory framework. The report confirms that more than 7.7 tons of physical gold back the circulating supply of XAU₮, solidifying its position as the market’s largest tokenized gold asset.

7.7 Tons of Gold Backing, $770M Market Cap

As of the end of Q1 2025, Tether reports that 246,523.33 troy ounces of gold are held in secure vaults in Switzerland, backing XAU₮ on a 1:1 basis. At the attestation date, the price per token stood at $3,123, with the market cap reaching approximately $770 million. 

Notably, XAU₮ reached an all-time high of $3,423 on April 21, 2025, driven by rising demand for safe-haven assets amid gold’s uptick. The development coincided with the global downturn in the financial markets, including crypto assets.

The attestation marks the first under a new regulatory regime in El Salvador, where XAU₮ is now a regulated digital asset. This development adds further legal certainty and positions Tether Gold as a standout asset among gold-backed tokens.

Tether Reports XAU₮ Grows Amid Shifting Monetary Landscape, Releases its First Attestation for Q1 2025, More Than 7.7 Tons of Physical Gold Backing the Token in Circulation

Read more @tethergold 👇https://t.co/GM2ngyVFO6

— Tether (@Tether_to) April 28, 2025

Gold Demand Soars as BRICS Central Banks Lead Accumulation

XAU₮’s growth reflects broader macro trends, as global investors and governments seek refuge from escalating inflation, trade disputes, and geopolitical instability. 

According to the World Gold Council, central banks purchased 1,044.6 metric tons of gold in 2024. BRICS nations led the charge in diversifying away from U.S. dollar reliance.

Tether presents XAU₮ as a natural extension of gold’s historical role as a store of value, now accessible via blockchain. 

Notably, Tether CEO Paolo Ardoino stated that XAU₮ allows users to access the stability of physical gold in digital form. Particularly, it is secure, easy to transfer, and fully backed by physical gold reserves on a one-to-one basis.

While Bitcoin remains the long-term vision for decentralized finance, Tether emphasizes that gold is already trusted in many emerging markets. XAU₮ fills a gap, especially for populations experiencing currency devaluation or political instability, by offering a digital, legally-backed version of their traditional hedge.

As fiat systems face mounting pressure, blockchain-based alternative assets like XAU₮ act as hybrid assets. XAU₮ merges centuries-old trust in gold with the efficiency and reach of digital assets.