Tether attests to full physical backing for its gold-based token as market value tops $2 billion

Tether has published its third-quarter attestation for its Tether Gold (XAUT) tokens, stating that each remains fully backed by physical bullion stored in Switzerland.

According to El Salvador-based TG Commodities S.A. de C.V., Tether's reserves totaled 375,572 fine troy ounces, which the issuer valued at roughly $1.44 billion as of Sept. 30 based on its end-Q3 reference price.

The company reported 522,089 XAUT in circulation and another 139,751 tokens available for sale, indicating additional stock has been allocated but not yet distributed.

Since that filing, gold's rally has pushed XAUT's fully backed market value of $2.1 billion, more than doubling from under $850 million in August, according to The Block price data.

"Tether Gold proves that real-world assets can thrive on-chain without compromise," said CEO Paolo Ardoino. "With gold prices at all-time highs and institutional interest in tokenized assets growing, XAU₮ represents the future of asset ownership, where physical security meets digital freedom."

Together, Tether Gold and PAX Gold account for nearly 90% of the $3.7 billion tokenized-gold market.

The token now ranks among the largest real-world-asset products on-chain, and is part of a broader wave of institutional and regulatory interest in tokenization. Even U.S. regulators have taken notice. SEC Commissioner Hester Peirce recently said tokenization is a "huge focus now" for the agency, highlighting how the effort to bring traditional assets like stocks and Treasurys onchain has become a mainstream policy and market priority.

The surge in tokenized gold also reflects a broader shift toward what some on Wall Street are calling the “debasement trade.” BlackRock CEO Larry Fink said this week that investors are turning to gold and crypto as “assets of fear” amid mounting concern over sovereign debt and currency erosion, describing them as hedges for both financial and physical security.

Still, analysts warn the metal's record-setting run may be losing momentum. Capital Economics told Business Insider the rally appeared "largely FOMO-driven" and could unwind into a "mini-bust," forecasting bullion prices to fall back toward $3,500 per ounce by 2026.