Tether Gold Reserves Surge 59% to 25.7 Tonnes as Tokenized Bullion Demand Accelerates
TREE NEWS reports: Tether Gold (XAUt), the gold-backed token issued by stablecoin giant Tether, saw its physical bullion reserves climb to approximately 25.7 tonnes as of September 30, 2026, up 59% from 16.2 tonnes at the end of 2025. The market value of the reserves rose from $2.25 billion to roughly $3.44 billion over the same period. The holdings, stored in Switzerland, increased from 520,089 troy ounces to about 827,418 troy ounces. At quarter-end, roughly 709,300 XAUt tokens were in circulation, with another 118,100 available for sale, each backed by one troy ounce of physical gold.
Tokenized Gold Finds Its Footing
The expansion underscores a broader shift in how investors access gold. Tokenized precious metals combine the inflation-hedge appeal of bullion with blockchain-native liquidity, allowing holders to move value 24/7 and use it as collateral in digital-asset markets. For Tether, the growth in XAUt complements its dominant stablecoin franchise and diversifies revenue away from pure dollar-denominated reserves. The 59% jump in tonnage is notable because it occurred alongside a rising gold price, meaning demand for the token itself—not just revaluation—drove the increase in metal held.
Competitive and Regulatory Backdrop
XAUt faces a growing field of rivals, including Paxos Gold (PAXG) and newer entrants from traditional finance. Yet Tether’s distribution network and brand recognition give it an edge, particularly in emerging markets where access to physical gold is costly. The decision to custody metal in Switzerland is also a marketing point, appealing to investors who prioritize jurisdictional safety. Regulatory clarity remains a key variable: as tokenized real-world assets fall under evolving frameworks in the EU and elsewhere, issuers that provide regular attestations and clear redemption terms stand to benefit.
What to Watch
- Whether Tether expands XAUt into new distribution channels or integrates it more deeply with DeFi lending protocols.
- The pace of redemption and issuance, which will test the operational backbone of the product.
- Competitive pressure from bank-issued or exchange-backed tokenized gold products.
For now, the trend line is clear: investors want exposure to gold that settles on-chain, and Tether is positioning itself at the center of that demand.
