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Tether Gold dominates 60% of tokenized Gold market as XAU₮ valuation exceeds $2.2 billion

  • Tether Gold strengthens its position in the Gold-backed stablecoin market, controlling 60% of the total market supply.
  • The Gold-backed stablecoin market expanded to $4 billion in 2025, driven by geopolitical uncertainty and macroeconomic volatility.
  • Gold prices hit a new record high above $5,000 on Monday as demand for safe-haven assets surges.

Tether Gold (XAU₮) dominated the Gold-backed stablecoin sector in 2025, accounting for approximately 60% of total market supply, as demand for tokenized real-world assets (RWAs) surged alongside Gold (XAU) prices.

Gold-backed stablecoin market surpasses $4 billion

The Gold-backed stablecoin market grew by 67.5% from $1.3 billion to $4 billion in 2025, driven by macroeconomic uncertainty, geopolitical tensions and high demand for safe-haven assets.

Tether Gold accounted for over 60% of the Gold-backed stablecoin supply through increased issuance and circulation. As of December 31, 2025, TG Commodities, an El Salvador-registered stablecoin issuer, confirmed XAU₮ holds 520,089.350 fine troy ounces of physical Gold backing 520,089.300 tokens in circulation. The stablecoin maintains a strict 1:1 backing ratio.

Tether stated in a press release that “Gold reserves are held in Switzerland in full compliance with London Good Delivery standards set by the London Bullion Market Association.”

Tether continues to emerge as a significant accumulator of tokenized Gold, with the strategy elevating the company among the top 30 global holders, beating countries such as Greece, Qatar and Australia, according to data released by the International Monetary Fund (IMF). In the fourth quarter alone, Tether’s Gold accumulation spree surpassed 27 metric tons, higher than most central banks worldwide during the same period.

“XAU₮ exists to remove ambiguity at a time when confidence in monetary systems is weakening, and it is being put through a pressure test by both institutions and people,” said Paolo Ardoino, CEO of Tether.

Meanwhile, Gold prices rallied to a new record high of $5,111 on Monday, ahead of the United States (US) Federal Reserve (Fed) monetary policy meeting on Tuesday and Wednesday.

Investors are pricing in a higher probability that the Fed will keep interest rates unchanged in the 3.50% to 3.75% range.

XAU/USD daily chart

As market uncertainty and geopolitical tensions thaw, blockchain-based RWA models continue to gain traction among institutions, asset managers, and individual investors. XAU₮ is gaining ground as a global standard for direct physical gold exposure, supported by deep liquidity, portability, and on-chain transparency.

Cryptocurrency prices FAQs

Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.

A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.

Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.

Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

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