Tether Gold (XAUt), the gold-backed digital token from Tether, is nearing a market capitalization of $1.5 billion.
Based on company data, Tether Gold’s market cap is currently around $1.46 billion, bolstered by 966 gold bars totaling 11,693.4 kilograms.
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Digital Gold Rush Drives Tether’s XAUt Toward $1.5 Billion
The company reported that the total minted supply of the token is 375,572.25 ounces, with 261,961.71 ounces—valued at approximately $1.01 billion—currently in circulation, while 113,610.54 ounces remain for sale.
The rise in the token’s market value reflects gold’s unprecedented surge. The spot gold price recently reached a record high of $3,896.49, marking its seventh consecutive weekly increase.
Analysts link this rise to investors seeking stability amid worries of a prolonged US government shutdown and growing expectations of interest rate cuts by the Federal Reserve.
As gold prices climb, digital tokens like XAUt are experiencing increased demand. Investors are increasingly viewing tokenized gold as a more liquid and accessible alternative to traditional forms of gold investment.
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As a result, Tether Gold has increased in value by nearly 46% over the last year and 10% in the past month, earning a spot among the world’s top 100 cryptocurrencies by market capitalization.
Tether to Broaden Gold Strategy
Tether’s goals in the tokenized asset arena extend well beyond the performance of XAUt.
The USDT issuer is reportedly looking to raise at least $200 million for a new Digital Asset Treasury Company (DATCO) focused on tokenized gold, in partnership with Antalpha, a firm associated with Bitcoin hardware manufacturer Bitmain.
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The DATCO is expected to hold Tether’s XAUt tokens and facilitate wider institutional involvement in tokenized gold.
This initiative builds on previous collaborations between Tether and Antalpha.
In June, Tether obtained an 8.1% equity stake in Antalpha, and by September, both companies had expanded their collaboration to enhance access to XAUt through collateralized lending and vault services in major financial hubs.
These arrangements permit investors to redeem tokens directly for physical gold bars, reinforcing the token’s value proposition in the real world.
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Additionally, Tether has expanded into the gold sector by investing in mining and royalty companies.
The firm has put over $200 million into Elemental Altus, a company listed in Toronto, and is reportedly in discussions with other global mining and royalty organizations.
These initiatives represent one of Tether’s boldest strategic moves since establishing its dominance in the stablecoin market.
As CEO Paolo Ardoino often points out, Bitcoin, gold, and land remain Tether’s primary hedges “against incoming darker times.” As of June, the firm held over $8.7 billion worth of gold on its balance sheet.
