TLDR
- Tether Gold’s market cap reaches $1.46 billion, backed by 11,693 kg of gold.
- Tether’s XAUt has grown 46% in value over the past year, outperforming markets.
- Tether’s new DATCO aims to boost institutional participation in tokenized gold.
- Tether invests $200M in mining firms to strengthen its gold-backed asset strategy.
Tether Gold (XAUt), the gold-backed token from Tether, is rapidly gaining traction in the market. With a market capitalization approaching $1.5 billion, XAUt is benefiting from a surge in gold prices and growing investor interest in tokenized assets. This rise follows Tether’s strategic move to deepen its gold-related investments, including the launch of a new Digital Asset Treasury Company (DATCO) in partnership with Antalpha.
Surge in XAUt Market Value
As of recent reports, Tether Gold’s market capitalization stands at around $1.46 billion, supported by 11,693 kilograms of gold. The token’s market growth mirrors the rally in spot gold prices, which have recently hit an all-time high. Analysts point to the current economic uncertainties, such as fears of a US government shutdown and expectations of Federal Reserve interest rate cuts, as factors pushing investors toward safe-haven assets like gold.
XAUt has gained nearly 46% in value over the past year and continues to experience growth. The token’s total supply stands at 375,572.25 ounces of gold, with 261,961.71 ounces in circulation. The remaining ounces are available for sale. Investors are increasingly seeing XAUt as an attractive, more liquid alternative to traditional gold holdings.
Tether Strengthens Gold Strategy Through New Partnerships
Tether’s move to launch the Digital Asset Treasury Company (DATCO) signals its deeper commitment to tokenized gold. The new initiative will hold XAUt tokens, attracting institutional investors looking for more exposure to gold-backed assets. Tether has partnered with Antalpha, a firm connected to Bitcoin hardware maker Bitmain, to manage DATCO.
The new company will provide a platform for institutional investors to participate in tokenized gold through collateralized lending and vault services. Tether aims to expand the access and liquidity of XAUt, ensuring that the token is a viable option for larger players in the financial market.
In addition, Tether acquired an 8.1% equity stake in Antalpha in June 2025, cementing the relationship between the two companies. The partnership aims to enhance the infrastructure for tokenized gold and offer direct redemption of XAUt tokens for physical gold bars. This move could open doors for broader institutional participation in digital gold assets.
Tether’s Broader Gold Investment Strategy
Beyond tokenized gold, Tether is also focusing on traditional gold investments. The company has invested over $200 million into mining and royalty companies, including Elemental Altus, a Toronto-listed company. This diversification into the physical gold sector further underscores Tether’s commitment to gold as a stable asset.
Tether’s investment strategy aligns with the company’s broader vision of protecting against economic uncertainties. As CEO Paolo Ardoino has stated, gold, Bitcoin, and land remain essential hedges in uncertain times. With gold prices rising and its investments in the mining sector, Tether is positioning itself as a key player in the gold market, both digitally and physically.
The Role of Tokenized Gold in the Financial Market
Tokenized gold, such as XAUt, offers benefits that traditional gold holdings do not. It allows for easier liquidity, faster transactions, and greater accessibility for smaller investors who may not have the means to buy physical gold. As the market for digital assets grows, tokenized gold is expected to play a larger role in diversifying investment portfolios.
With the rising demand for digital assets and gold, XAUt’s success highlights the growing interest in tokenized commodities. Tether’s strategic investments and new partnerships indicate that tokenized gold is becoming an important part of its broader business model, helping to build confidence among investors seeking stable and liquid investments in uncertain times.
