Tether Gold Reserves Surge Amidst Downturn in Physical Gold
Vexoda Newsroom
Tether's tokenized gold (XAUt) saw a significant increase in reserves by 9.5% during the second quarter, despite physical gold prices falling sharply. This move reflects growing demand for transparent
In the latest update from Tether, it was revealed that the company's tokenized gold (XAUt) saw its bullion reserves increase by 9.5% in the second quarter of 2026, while physical gold prices experienced their worst quarterly performance since 2013, dropping 14.1%. This surge comes as Tether continues to expand access and transparency for tokenized commodities.
Paolo Ardoino, CEO of Tether, highlighted in the XAUt attestation report that holders are not just buying during periods when gold prices rise but also increasing their ownership through this fully-backed product during market downturns. According to RWA.xyz data, the number of XAUt token holders grew by 6.5% to reach 253,000 in the past month.
The physical gold reserves backing Tether Gold increased significantly by 36% in the first quarter, reaching 707,747 fine troy ounces, valued at $3.3 billion as of quarter-end. Additionally, XAUt received Shariah certification from Amanah Advisors in July, potentially opening up access to Islamic financial institutions.
Tether Gold currently ranks as the largest distributed tokenized commodity product with a total value of $2.4 billion as of Monday. This growth underscores the increasing demand for transparent and accessible gold exposure through blockchain technology.
The market's reaction to this news was mixed, but it highlights the growing interest in digital alternatives to traditional commodities like gold. Traders should be aware that despite physical gold prices falling, tokenized gold is seeing increased adoption due to its portability and transparency benefits.
This development has broader implications for both cryptocurrency markets and traditional commodity trading. It suggests a shift towards more decentralized forms of investment and could potentially attract new investors from the blockchain community who are looking for secure and accessible ways to invest in precious metals.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.