Each token is backed by one troy ounce of physical gold held in reserve, bringing total holdings to 154 tons.
Tether News
Tether Gold (XAUt), Tether's tokenized gold product, crossed $3.3 billion in market cap during Q1 2026, according to the company's latest quarterly report. The figure represents a 36% increase over the three-month period, equivalent to roughly $1.1 billion in added value since January.
A total of 707,741 XAUt tokens were in circulation at the close of Q1. Each token is backed by one troy ounce of physical gold held in reserve, bringing total holdings to 154 tons. Tether said demand strengthened as investors moved toward hard assets amid geopolitical tensions and uncertainty over Federal Reserve interest rate decisions.
Tokenized Gold Overtakes Rivals
XAUt now holds more than half of the total tokenized gold market by market cap. Its closest competitor, PAX Gold (PAXG), issued by Paxos and supervised by the New York State Department of Financial Services (NYDFS), carries a market cap of nearly $2.2 billion. Together, the two products account for the majority of the tokenized gold segment within the broader digital asset market.
Gold prices moved sharply during the quarter. The metal climbed early in the year on safe-haven demand, briefly peaking above $5,500 per troy ounce, before pulling back as rate-cut expectations faded and the US dollar strengthened. Some investors exited positions to lock in gains from the earlier rally, contributing to the decline.
Gold was trading at approximately $4,500 per troy ounce at the time of reporting. XAUt's US dollar price was up 4.37% year-to-date, according to Yahoo Finance data.
Tokenized gold products allow investors to gain exposure to bullion without managing physical storage or logistics. They also support round-the-clock trading and seamless global transfers, features that traditional bullion markets do not offer.
Both tokens sit within a broader market for tokenized real-world assets (RWA), valued at nearly $31 billion according to data from RWA(dot)xyz. The growth of XAUt and PAXG within that market points to sustained demand for blockchain-based exposure to physical commodities like gold.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
