 crosses $1.2B market cap with 54% quarterly user growth. Backed by physical gold in Switzerland, XAUt is becoming a leading tokenized real-world asset in 2025.){kind=link}
Tether Gold (XAUt), the tokenized gold offering collateralized by physical holdings in Switzerland, has achieved a milestone as its market capitalization has exceeded $1.25 billion.
Tether CEO Paolo Ardoino shared the announcement in a post on X earlier today, revealing user adoption is growing at an increasing rate of 54% each quarter.
This demand demonstrates the increased investor appetite for tokenized real-world assets (RWAs) that combine traditional safe-haven assets with the liquidity of trading on the blockchain.
XAUt tokens are backed by one troy ounce of gold. The token allows investors a hedge from economic uncertainty, while relieving them of direct physical possession.
Tokenized Real-World Assets See Explosive Growth, XAUt Emerges as a Leader
The total tokenized RWA market is now $26.3 billion in August 2025, doubling year-over-year.
According to previous reports, $15.3 billion of that growth can be attributed to private credit tokens, and $7.31 billion to tokenized U.S. Treasuries.
Tether Gold is second in the growing RWA ecosystem, with $1.25 billion of tokenized gold, only behind BlackRock’s BUIDL treasury fund.
With tokenized gold increasing 80% year-to-date, XAUt’s standing as a digital hedge continues to strengthen; however, competition from yield-generating private credit assets limits upside.
Also Read: MoonPay Now Launches Tether Gold XAU₮ To Its Offerings, Details Inside
Technological Expansion Through Avalanche Integration
On August 13th, Tether Gold integrated with Avalanche through Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
The upgrade means that XAUt can move seamlessly around 40+ different blockchains without being wrapped, thus making gold-powered assets more accessible for investors and protocols to integrate in their decentralized finance (DeFi) strategies.
XAUt reserves worth over $820 million are now able to sit across multiple chains and provide better liquidity options for investors.
While XAUt’s movement with Avalanche presents better liquidity opportunities, it makes the price a more composable digital asset as an asset, and, when looking at just the 24-hour price range of $34.6 million, it is still relatively small when you start with the market cap.
Also Read: Tether’s CEO Unveils $100B US Treasuries Holdings & 48 Tons of Gold Amid DOJ Investigation
Market Volatility Driven by Geopolitical and Trade Factors
Additionally, external economic and trading developments have also affected recent market activity in XAUt.
Earlier this month, U.S. tariffs on Swiss gold bars resulted in a sudden surge in XAUt prices, pushing it to a temporary high of $3,390, as minting volume soared to a five-year high of $439 million.
Even if this spike was corrected after tariff exemptions were clarified, the uptick in minting, 125% compared to 2021, is indicative of structural demand for gold-backed digital assets.
These developments also illustrate volatility for tokenized gold and where macroeconomic shifts, trade skirmishes, and policy changes can still have partitions in near-term price volatility.
Also Read: Tether Partners With TON Foundation To Roll Out Omnichain XAUt0
Tether’s Strategic Moves Cement XAUt’s Market Position
Tether’s bold move to reinforce its gold-backed offerings has served to prove the early success of XAUt.
On June 12, UnoCrypto reported that the company acquired a 31% stake in Elemental, a gold royalty company located in Canada, with the option to purchase an additional 34.4 million shares in the company later this year.
Just weeks later, on July 9th, we also reported that Tether announced that it now has over $8 billion of gold, approximately 80 tons, in a private Swiss vault it built and fully controls.
These steps will not only diversify Tether’s reserves but also lower reliance on fiat assets against increasing fears around U.S. debt levels.
Also Read: Tether Tops Germany With $120B In U.S. Treasury Bills, Becomes 19th Largest Holder