Tether Gold (XAUt), a digital asset representing ownership of physical gold, has experienced substantial growth over the past year, propelled by significant institutional investor interest arising from increasing global economic uncertainty. The token’s price surged by approximately 40%, closely mirroring the performance of physical spot gold.
Backed by 7.66 tons of physical gold stored in Switzerland, Tether Gold boasts a market valuation surpassing $800 million. This growth occurs against a backdrop of heightened demand for traditional gold allocations. Global central banks added over 1,000 metric tons to their reserves in 2024, a move largely attributed to rising geopolitical tensions and currency volatility concerns.
Simultaneously, institutional flows into gold exchange-traded funds (ETFs) reached $38 billion during the first half of 2025, marking the strongest inflow rate seen in five years. This trend underscores a broad shift towards safe-haven assets like gold.
Compared to owning physical bullion directly, Tether Gold offers distinct advantages including enhanced liquidity, high divisibility allowing for smaller transactions, and streamlined, rapid transfers facilitated by its availability on multiple cryptocurrency exchanges. These features make XAUt an increasingly practical tool for accessing gold exposure.