Tether Gold supply is growing faster than USDT

Tether is experiencing a strong surge in the gold token segment as the supply of Tether Gold (XAUT) increases much faster than USDT in Q4. According to a certification report from BDO Italy, by December 31, 375,000 XAUT had been issued, a 38% increase over three months, while the market capitalization of USDT only grew by 7% to $187 billion. In Q4 alone, Tether sold approximately 173,400 XAUT, equivalent to $882 million worth of gold, amid gold prices reaching a new high above $5,100 per ounce.

CEO Paolo Ardoino stated that XAUT was created to meet the hedging needs as confidence in the monetary system weakens. This token is backed by physical gold stored in Switzerland, currently valued at around $2.64 billion — a significant increase compared to a year ago and ranking among the top 50 largest digital assets in the market.

XAUT directly competes with Paxos’ PAX Gold but has quickly taken the lead in the tokenized gold segment. Tether also promotes gold’s role in payments through the “Scudo” exchange unit, equivalent to 1/1,000 ounce of gold.

However, BDO’s reports are only certifications, not full audits — a concern previously noted by regulators. Earlier, Tether announced plans to issue USAT, a US-regulated stablecoin, requiring reserves in cash and Treasury bonds. Meanwhile, market predictions still lean toward the scenario of continued gold price increases in the near future.