Tether, the world’s largest stablecoin issuer, announced on Jan. 26 that demand for its gold-backed token Tether Gold (XAU₮) surged sharply in Q4, pushing quarterly sales to an all-time high.
Tether bought 27 tons of gold in Q4 last year, and they are now worth $4.4 billion after the gold surge today. pic.twitter.com/1l7P4ihvTQ
— Thomas Lee (@Tlee1228) January 26, 2026
XAU₮ has now cemented its dominance in the tokenized gold market, capturing roughly 60% market share as of Dec. 31, 2025. Operating under El Salvador’s Digital Assets Law, Tether reports that every XAU₮ token is fully backed by physical gold held in Swiss vaults.
According to the company, more than 520,000 troy ounces of gold are currently secured under LBMA-compliant custody standards. By year-end, XAU₮’s market capitalization climbed to approximately $2.246 billion, underscoring growing investor appetite for blockchain-based exposure to precious metals.
The broader tokenized gold sector also posted strong growth. Market size expanded 67.5% throughout 2025, surpassing $4 billion in total value, driven by rising interest in real-world asset (RWA) tokenization among both institutional and retail investors.
Record Gold Prices Fuel Demand for Digital Alternatives
XAU₮’s rapid adoption comes amid heightened macroeconomic uncertainty and escalating geopolitical tensions worldwide.
Gold prices surged to nearly $5,966 per ounce by the end of 2025, marking one of the strongest performances in decades. At the same time, Bitcoin—often referred to as “digital gold”—also attracted renewed attention as investors sought alternative stores of value.
Tether CEO Paolo Ardoino said XAU₮ is designed to provide clarity and stability as confidence in traditional monetary systems weakens. With central banks expected to continue expanding gold reserves, demand for gold-backed digital assets is accelerating.
Major financial institutions, including Goldman Sachs, have projected further upside for gold prices, reinforcing the appeal of tokenized bullion products like XAU₮.
Tether Emerges as One of the World’s Largest Gold Holders
Tether added approximately 27 metric tons of gold to its reserves in Q4 alone. Best known as the issuer of the U.S. dollar–pegged stablecoin USDT, the company has now become one of the top 30 gold holders globally, surpassing the reserves of countries such as Greece, Qatar, and Australia.
Blockchain analytics also show rising institutional participation in tokenized gold markets, with frequent large-scale swaps between stablecoins and gold-backed tokens.
As capital continues flowing into blockchain-based commodities, Tether is positioning itself not just as a technology provider—but as a major player in the global gold market itself.
