Tether Gold hits $2b as investors lock into digital bullion

Tether Gold now represents over $2 billion in value, cementing its role as a foundational asset that merges the security of physical bullion with the operational ease of a digital token for a new class of investor.

On Oct. 28, stablecoin giant Tether announced that its Tether Gold token (XAUT) has surged past a $2 billion market capitalization. This milestone, reached as the token’s value climbed from $1.44 billion at the end of Q3 to approximately $2.1 billion in a matter of weeks, is backed by over 375,000 fine troy ounces of physical gold held in a Swiss vault.

Notably, Tether Gold’s ascent comes amid a historic rally in gold prices, which have breached the $3,850 per ounce mark, drawing institutional capital seeking a verifiable hard asset.

“Tether Gold proves that real-world assets can thrive on-chain without compromise,” Tether CEO Paolo Ardoino said. “With gold prices at all-time highs and institutional interest in tokenized assets growing, XAU₮ represents the future of asset ownership, where physical security meets digital freedom.”

Tether Gold finds its footing in regulated markets

According to confirmed data from TG Commodities, the entity overseeing the asset under El Salvador’s regulatory framework, Tether Gold maintains a precise 1:1 peg. With nearly 140,000 tokens still available for sale, the platform has significant capacity to absorb further demand.

All of this physical gold is stored in Switzerland under the stringent London Good Delivery standards, and token holders retain the right to redeem their holdings for delivery of physical bars to a Swiss address.

Tether Gold’s surge comes against one of the most dramatic price environments the metal has ever seen. Gold’s price ascent to record levels in 2025 has been largely driven by persistent global inflation, deepening geopolitical fractures, and a notable accumulation of bullion by central banks worldwide.

This flight to safety is reflected in the broader tokenized gold market, which, despite a 2.6% dip on Tuesday, maintains a total market capitalization of $3.72 billion. Within this sector, Tether Gold’s main competitor, PAX Gold (PAXG), holds a market cap of approximately $1.31 billion, followed by Kinesis Gold and others with significantly smaller valuations.

Institutional momentum

Tether Gold’s milestone is particularly noteworthy, coming just weeks after a landmark move in public markets. In early October, Antalpha Platform Holding Company led a $150 million financing round to convert a Nasdaq-listed shell company into Aurelion Inc., a public entity whose primary treasury asset will be Tether Gold.

The deal, backed by Antalpha, Tether’s own commodity arm, and Kiara Capital, represents a profound vote of confidence. It effectively creates the first publicly-traded corporate treasury solely dedicated to a blockchain-based gold token, lending a new layer of institutional legitimacy to the entire RWA narrative.