As gold prices reached unprecedented heights in the third quarter, Tether expanded the physical reserves behind its tokenized gold product, XAUT, to 11.6 tons. By September’s conclusion, Tether had secured 375,000 ounces of gold in Swiss vaults, causing XAUT’s market valuation to rise to $2.1 billion by October. Concerns surrounding inflation and global tensions have reignited interest in digital gold investments.
How Is Tether Gold Continuing to Rise?
Tether, via its statement, clarifies that XAUT is issued by TG Commodities under El Salvador’s cryptocurrency regulations. Each coin is steadfastly backed by one troy ounce of fine gold, securely stored in Swiss vaults. This offering allows investors to maintain value without the necessity of holding physical gold.
Third-quarter data highlights XAUT’s market value surpassing $1.4 billion as gold’s price soared to $4,500 per ounce by October, lifting its market value to $2.1 billion. According to CoinMarketCap, Tether’s digital gold currently possesses an estimated market value of $2.08 billion.
Tether CEO Paolo Ardoino expressed, “XAUT presents a digital alternative, especially appealing to those in emerging markets with restricted access to traditional financial options.”
Can Digital Gold Become a Mainstream Investment?
Tokenized gold provides a unique opportunity for investors, holding gold as a Blockchain asset without the complications of physical storage and logistics. This model affords both transparency and greater access. XAUT has become particularly significant for those without options for gold accounts or access to exchange-traded funds.
Experts attribute the rise in digital gold interest not just to its value appreciation but to pervasive global economic uncertainties. The decentralized infrastructure of digital gold offers a modern means to hold gold, appealing to the growing interest in cryptocurrency-compatible investments.
– XAUT expanded its gold reserves to 11.6 tons.
– The tokenized gold’s market valuation hit $2.1 billion by October.
– Gold prices soared to $4,500 per ounce, enhancing XAUT’s allure.
– Tether’s digital gold is primarily stored in Swiss vaults.
The strategic expansion of Tether’s tokenized gold reserves amid climbing gold prices and geopolitical tensions underscores a renewed global interest in digital precious metals. As the landscape continues to evolve, digital gold like XAUT presents a compelling alternative, positioning itself as a modern safe haven for investors worldwide.
