Tether's XAUT minting operation causes a 20% increase in the supply of tokenized gold within a single day.
In the dynamic world of digital assets, Tether's XAUT has been making waves, surpassing Paxos Gold (PAXG) to become the largest tokenized gold asset. This shift, which took place in the second quarter of 2025, comes amidst a backdrop of increased investor interest in gold-backed tokens and a substantial price rally in gold.
The sluggish labor market growth and other negative economic indicators, as well as geopolitical tensions, have contributed to the appeal of tokenized gold. In fact, the volumes of tokenized gold surpassed $19 billion in Q2 of 2025, overtaking major gold ETFs.
The price rally in gold has propelled XAUT’s value up over 40% in 2025, reaching around $3,350 per token. This surge has resulted in a market cap for XAUT that surpassed $800 million to over $826 million by mid-2025.
Several key factors have contributed to XAUT's prominence and market cap expansion. These include geopolitical and macroeconomic uncertainties, institutional adoption, large token minting events, transparency and regulatory alignment, market availability, and trading volumes.
Persistent global instability and economic risks have increased the appetite for safe-haven assets like gold, boosting demand for gold-backed tokens. Central banks added over 1,000 metric tons of gold in 2024, and ETFs attracted significant inflows ($38 billion), indicating broader institutional interest that also benefits XAUT’s growth.
In July 2025, Tether minted $436.94 million worth of XAUT tokens, increasing the tokenized gold supply by 20%, pushing XAUT past Paxos Gold as the largest tokenized gold asset by market cap. Tether’s focus on maintaining strong, transparent physical reserves backing XAUT, coupled with compliance efforts in response to evolving stablecoin regulations, adds investor confidence.
XAUT is accessible on major exchanges like Kraken, KuCoin, Bitfinex, and Bybit, facilitating liquidity and wider participation. Moreover, XAUT price tracks the London Good Delivery gold spot price closely, offering reliable gold exposure on the blockchain.
The number of XAUT holders rose by 173% in 2025, compared to 29% for PAXG. All three assets, PAXG, XAUT, and KAU, benefited from the macroeconomic uncertainty, with quadruple-digit growth in some cases. Gold volumes saw multi-week rallies following President Donald Trump's tariff announcement on major U.S. trading partners.
With its strong growth and ongoing gold market strength, Tether Gold’s XAUT is positioned as a leading real-world asset token, bridging traditional bullion value with digital asset efficiency, supported by growing institutional credibility. Price forecasts range bullishly up to $4,600 by year-end 2025, suggesting further growth potential amid continued economic uncertainties.
However, it's worth noting that the XAUUSD weekly gold forecast predicts gold to retrace to buying levels this week, a prediction that depends on the current context.
[1] CoinDesk (2025). Tether Gold's XAUT Overtakes Paxos Gold as Largest Tokenized Gold Asset. [online] Available at: https://www.coindesk.com/business/2025/07/23/tether-gold-xaut-overtakes-paxos-gold-as-largest-tokenized-gold-asset/
[2] Finance Magnates (2025). Tether Mints $436.94 Million Worth of XAUT Tokens. [online] Available at: https://www.financemagnates.com/cryptocurrency/news/tether-mints-436-94-million-worth-of-xaut-tokens/
[3] Cointelegraph (2025). XAUT Now Available on Major Exchanges. [online] Available at: https://cointelegraph.com/news/xaut-now-available-on-major-exchanges
[4] Blockchain.News (2025). Tether Gold's XAUT: A Bridge Between Traditional Bullion and Digital Assets. [online] Available at: https://blockchain.news/news/tether-gold-xaut-a-bridge-between-traditional-bullion-and-digital-assets
[5] Bloomberg (2025). Gold Demand Surges Amidst Economic Uncertainties. [online] Available at: https://www.bloomberg.com/news/articles/2025-06-15/gold-demand-surges-amidst-economic-uncertainties
- The surge in gold's price in 2025 has greatly increased the value of Tether's XAUT token, which tracks the London Good Delivery gold spot price closely, reaching around $3,350 per token.
- With the volumes of tokenized gold surpassing $19 billion in Q2 of 2025 and the sluggish labor market growth, geopolitical tensions, and economic indicators contributing to the appeal of gold-backed tokens, XAUT has become the largest tokenized gold asset, surpassing Paxos Gold.
- XAUT is now accessible on major exchanges like Kraken, KuCoin, Bitfinex, and Bybit, ensuring liquidity and wider participation, thus facilitating its growth.
- As a leading real-world asset token, XAUT is bridging traditional bullion value with digital asset efficiency, attracting increasing institutional interest and possible growth potential as high as $4,600 by year-end 2025. Additionally, the price forecasts incorporate factors such as geopolitical and macroeconomic uncertainties, institutional adoption, large token minting events, transparency, regulatory alignment, market availability, and trading volumes.
