Tether's gold-backed stablecoin, XAUT, is experiencing explosive growth, with its supply increasing at five times the rate of its flagship USDT stablecoin in the fourth quarter of 2025. According to an attestation report from accounting firm BDO Italia, Tether minted 375,000 XAUT tokens as of December 31, a 38% increase from three months prior. In contrast, USDT's market capitalization grew 7% to $187 billion in the same period.
The surge coincides with gold prices reaching a historic all-time high, surpassing $5,100 per ounce. Tether reported selling approximately 173,400 XAUT tokens in Q4, equating to $882 million worth of gold exposure and more than triple the amount sold in the previous six months. The company also announced it purchased around 27 tons of gold in Q4 2025, bringing its total physical gold reserves to 520,089.35 troy ounces held in Swiss vaults.
Tether CEO Paulo Ardoino framed the shift toward gold as a response to weakening confidence in traditional monetary systems, stating XAUT was designed to "remove ambiguity at a time when confidence in monetary systems is weakening." This reflects a broader "debasement trade" driven by concerns over government debt and inflation.
With a market capitalization now exceeding $4 billion, XAUT has become the 50th largest cryptocurrency and controls over 60% of the gold-backed stablecoin market, which grew from $1.3 billion to over $4 billion throughout 2025. Tether's gold holdings have reportedly placed it among the world's top 30 gold holders, surpassing nations like Greece and Australia, according to IMF and Jefferies data.
The company continues to face scrutiny, as BDO Italia's attestations are distinct from a full financial audit—a point highlighted by critics. Meanwhile, Tether is also preparing to launch USAT, a U.S.-regulated stablecoin compliant with the GENIUS Act, which mandates backing by cash and U.S. Treasuries.
