Tether Gold (XAUt) has transferred 94 tonnes of gold on-chain over the past six months with total transaction costs amounting to a mere 0.0016% of the value moved. Tether CEO Paolo Ardoino highlighted this extreme cost efficiency, contrasting it with the multimillion-dollar expenses tied to the physical transportation of gold between central banks for logistics, insurance, and security.
As of February 22, 2026, XAUt holds over 60% of the tokenized gold market, which now exceeds $6 billion in total value. The token trades near $5,100 per ounce, following gold's brief surge to an all-time high of $5,597 in late January. XAUt's market capitalization stands at roughly $2.66 billion, with daily trading volumes between $172 million and $247 million, making it the most actively traded digital gold asset.
Tether's physical gold reserves have grown to approximately 148 tonnes, valued at around $23 billion, placing the company among the top 30 gold holders globally. This scale underscores the rapid growth of tokenized bullion beyond a niche product. Institutional adoption is accelerating, marked by several key developments. On February 17, Elemental Royalty Corp. became the first publicly listed gold company to offer shareholders the option to receive dividends in XAUt. Earlier in February, Tether announced a $150 million investment for a 12% stake in Gold.com to integrate XAUt into physical gold marketplaces.
Furthermore, Tether continues to accumulate between one and two tonnes of gold per week to back new issuance. The company has also launched XAUt0, an omnichain version built using LayerZero's OFT standard and initially deployed on The Open Network, to expand cross-chain liquidity and DeFi access.
The tokenized gold sector is dominated by XAUt and Pax Gold (PAXG), which together account for roughly 90% of the market. While traditional vehicles like SPDR Gold Shares remain larger, digital tokens offer 24/7 trading and lower fees, particularly on networks like Tron for XAUt. PAXG, issued under a New York trust structure with monthly audits, attracts compliance-focused investors. Both tokens allow physical redemption starting at 430 tokens, equivalent to a standard 400-ounce gold bar plus fees, with XAUt's bullion stored in Switzerland and PAXG's in London.
Institutional participation is increasing, with Wintermute launching an OTC desk for both XAUt and PAXG on February 17 and forecasting the tokenized gold market could reach $15 billion by the end of 2026. Exchanges have also promoted retail adoption through zero-fee trading promotions. The movement of 94 tonnes with negligible on-chain costs reinforces the narrative that tokenized gold is competing on infrastructure efficiency, potentially evolving into a parallel settlement rail for global bullion markets.
