Understanding Tether Gold (XAUT): A Digital Gold Backed by Physical Assets

In the fast-paced world of cryptocurrencies, assets backed by tangible and valuable real-world commodities are highly sought after. Tether Gold (XAUT) is one such popular asset, which, as its name indicates, brings the world's most precious metal, gold, into the digital realm. Investors seeking transparency often ask: exactly how much physical gold underpins this digital asset, and where are these valuable reserves stored?

The precise backing of gold has been officially disclosed. According to the first official attestation report recently published under El Salvador's new regulatory framework, detailed information about the backing has been provided. As of April 28, Tether Gold's market value reached approximately $770 million. The report states that the physical backing consists of exactly 246,523.33 troy ounces of gold, equivalent to over 7.7 metric tons. Tether has confirmed that this significant amount of physical gold is stored securely in a dedicated vault in Switzerland, a country renowned for its secure storage of valuable assets.

Each XAUT token is backed 1:1 with one troy ounce of gold certified by the LBMA (London Bullion Market Association). Tether emphasizes that to maintain trust and transparency, rigorous controls—including gold bar verification and periodic audits—are in place to confirm the existence and authenticity of the backing gold.

The growth of Tether Gold's market value to $770 million coincides with a global increase in demand for gold. Investors worldwide are turning to gold as a safe haven against economic instability, rising inflation, and geopolitical risks. In 2024, central banks, especially within the BRICS countries, purchased a record 1,044 tons of gold, indicating a significant move toward this precious metal on an international scale. Gold prices have also surged in 2025, with a roughly 27% increase, with the price per ounce reaching approximately $3,343—more than doubling since November 2022. This price rise has further enhanced the appeal of gold-backed assets like Tether Gold.

Unlike many tokenized gold products that are often backed merely by "paper gold," Tether asserts that XAUT is directly backed by physical gold. Its inclusion within El Salvador's new regulatory framework makes it a more transparent and trustworthy option for users seeking digital access to physical gold.

Tether's CEO, Paolo Ardoino, remarked that while central banks are accumulating hundreds of tons of gold, XAUT is poised to become the standard product of tokenized gold for both individuals and institutions.

What is Tether Gold (XAUT)? 

Tether Gold is a digital token on the blockchain, with each unit backed by one ounce of physical gold. It aims to provide an easy and digital method for accessing physical gold.

Can I be sure that the gold backing XAUT truly exists? 

Yes. Tether states that the backing gold is stored in secure vaults in Switzerland. They publish attestation reports conducted by independent auditors, confirming the existence and authenticity of the gold backing. These reports promote transparency.

Why are investors interested in tokenized gold like XAUT? 

Physical gold is widely regarded as a hedge against inflation and economic instability. Tokenized gold like Tether Gold allows investors to access gold without the need for physical storage, offering ease of trading (24/7) and inclusion in digital portfolios.