Tether Holdings Ltd. has released its first quarterly attestation report for Tether Gold (XAUT), confirming that each XAUT token is fully backed by physical gold stored in Swiss vaults. The disclosure, covering the period through April 28, 2025, verified that 246,523.33 troy ounces—approximately 7.7 metric tons—are held in custody against circulating tokens.

The move comes as demand for digital gold assets accelerates amid mounting concerns over inflation, geopolitical instability, and the potential impacts of new global trade tariffs. XAUT, which represents one troy ounce of London Bullion Market Association (LBMA)-certified gold, has seen its market capitalization climb to $770 million. The token was priced at $3,123.57 at the end of the first quarter, reaching a new all-time high of $3,423 earlier in April.

According to the attestation, Tether’s gold reserves are held under stringent custody protocols, including regular audits, counterparty vetting, and LBMA certification standards. The physical metal remains stored within Switzerland’s secured vault infrastructure, with external auditors overseeing ongoing compliance and periodic assays.

The company attributed XAUT’s growth to a broader global trend, as investors increasingly shift toward hard assets. The World Gold Council recently reported that central banks accumulated more than 1,044 metric tons of gold in 2024, highlighting the asset’s rising role in strategic reserve management, particularly among BRICS nations aiming to reduce U.S. dollar exposure.

Tether CEO Paolo Ardoino said the launch of the attestation reflects the company’s commitment to transparency amid a rapidly evolving regulatory environment for asset-backed tokens. “Tether Gold combines the security of physical gold with the efficiency and accessibility of digital assets,” Ardoino said in a statement, noting that XAUT continues to attract users seeking alternatives to traditional financial instruments.

The announcement follows a series of strategic initiatives from Tether intended to diversify its operations beyond USDT, its flagship stablecoin. Recent moves include investments in Bitcoin mining, artificial intelligence firms, and tokenization infrastructure. XAUT’s regulatory standing has also improved, with the product recently gaining recognition under El Salvador’s blockchain asset frameworks.

Tether said that while the gold price remains subject to market volatility, its operational focus for XAUT remains on maintaining full asset backing and compliance with international standards. An independent audit of the company’s reserves is reportedly underway in cooperation with a Big Four accounting firm.

Tether Gold’s performance has positioned it as the leading tokenized gold product globally, offering an inflation hedge at a time when traditional financial assets face heightened volatility. Whether XAUT can continue to gain traction amid tightening regulatory oversight and intensifying competition from new tokenized commodities remains to be seen.