- Tether has released its first official attestation for Tether Gold (XAU₮), confirming over 7.7 tons of physical gold backing the token
- XAU₮’s market capitalization has reached $770 million, with each token representing one troy ounce of gold stored in Swiss vaults
- The growth of XAU₮ reflects increasing demand for inflation-resistant assets amid global economic uncertainty and geopolitical tensions
Tether, the issuer of the world’s largest stablecoin USDT, has unveiled its first formal attestation for its gold-backed token, Tether Gold (XAU₮), confirming that each of the 246,523.33 tokens in circulation is backed by one troy ounce of physical gold. This equates to more than 7.7 tons of gold, which it says is securely stored in Swiss vaults. The attestation, released on April 28, 2025, marks a significant step in Tether’s efforts to provide transparency and build trust in its digital assets, although critics will ask for a full third-party audit.
Swiss Vaults Holding Tether Gold
Tether Gold, launched in January 2020, is a digital token that represents ownership of physical gold. Each token is backed 1:1 by one troy ounce of gold, with the reserves stored in secure vaults in Switzerland. Tether says that the gold bars are certified by the London Bullion Market Association (LBMA), ensuring their quality and authenticity, and it has implemented stringent controls, including rigorous counterparty selection, certificate verification, and regular audits, to maintain the integrity of the reserves.
The token’s market capitalization now sits at $770 million, with gold hitting an all-time high price of $3,423 on April 21, 2025. This surge reflects the growing demand for assets that can serve as a hedge against economic instability, with Tether attributing the growth of XAU₮ to factors such as escalating global economic uncertainty, heightened geopolitical tensions, and a rising demand for inflation-resistant stores of value. Tether CEO Paolo Ardoino extolled the virtues of XAU₮ in the attestation report:
With XAU₮, we’re offering users the ability to access the security of physical gold in a digital form—secure, easily transferable, and backed 1:1 by fully held gold reserves.
Full Audit Still Lacking
The release of the attestation provides users with assurance that the digital tokens they hold are fully backed by tangible assets, although it still falls short of the full independent audit that critics demand is required. An attestation is a report by an independent third party that evaluates and confirms the accuracy of specific information provided by a company—in this case, the amount of gold backing XAU₮ tokens. This is similar to a company’s annual accounts, which rely on data provided by the company.
An audit, on the other hand, is a more comprehensive examination of a company’s financial statements and internal controls. While Tether’s attestation provides transparency regarding the gold reserves, it is not as exhaustive as a full financial audit, leaving lingering doubts among critics.
