Tether gold token gains as dollar weakens

Tether’s tokenised gold product XAUt has grown to represent more than half of the gold-backed stablecoin market as investors increasingly turn away from the US dollar in favour of safe-haven assets.

The market for tokenised gold is expanding alongside demand for physical bullion, reflecting rising geopolitical tensions and trade uncertainty that are weighing on confidence in the dollar.

“Tether Gold has grown large enough to sit alongside some sovereign gold holders in terms of scale,”

Said Tether chief executive Paolo Ardoino, referring to the bullion backing its XAUt token.

Tether said 520,089 XAUt tokens were in circulation at the end of the fourth quarter, with each token backed one-for-one by physical gold held in reserve and total value exceeding $2.2 billion.

The update came as Comex gold surged past $5,000 a troy ounce for the first time, extending year-to-date gains to about 17% as official sector buying accelerated.

Central banks bought a net 220 tonnes of gold in the third quarter of 2025, according to the World Gold Council, as reserve managers diversified away from dollar-denominated assets amid currency and geopolitical risks.

“The debasement trade is now well understood,”

Said Otavio Costa of Azuria Capital, adding that the next phase could be a broad weakening of the US dollar, while analysts note Bitcoin has yet to displace gold as the preferred hedge.

At the time of reporting, Bitcoin price was $88,314.87.