What Happened?
Tether Gold exhibited significant growth in the second quarter of 2025, with reserves backed by physical gold exceeding 7.66 tons (approximately 246,500 ounces), making it the largest gold tokenized product on the market. In the context of global macroeconomic turmoil, currency fluctuations, increasing debt burdens, and geopolitical uncertainty, both retail and institutional investors regard gold as an important safe-haven asset. The growth of XAU₮ reflects market demand for this “hard asset,” providing a reliable and modern way to hold gold, particularly as central banks continue to increase their gold holdings.
Tether Gold perfectly combines the value-preserving characteristics of traditional gold with the convenience, liquidity, and transparency of blockchain technology. It not only provides investors with a tool to hedge against inflation and currency risks but also simplifies the process of holding, transferring, and storing gold, making it a modern alternative to traditional gold ownership in the digital age.
Continuously Growing Physical Gold Reserves and Market Outlook
As the global macroeconomic landscape changes, an increasing number of investors are seeking to hedge against currency fluctuations, rising debt burdens, and policy uncertainties, further highlighting gold’s status as a safe-haven asset. Against this backdrop, Tether Gold (XAU₮) has continued to grow robustly in the second quarter of 2025, with its physical gold reserves surpassing 7.66 tons as of June 30, 2025, reaffirming its leading position in the gold tokenization market.
According to a recent report from XAU₮ issuer TG Commodities, as of June 30, 2025, the circulating supply of Tether Gold was 246,524.330 XAU₮ tokens, each backed 1:1 by one ounce of physical gold. This means the physical gold reserves of XAU₮ have reached 246,524.38 troy ounces, equivalent to approximately 7.66 tons of gold, all stored in Switzerland.
Key Highlights of Q2 2025
- Total Physical Gold Reserves: 246,524.380 troy ounces
- Total Circulating XAU₮ Tokens: 246,524.330000 XAU₮
- Gold Support Ratio: 1:1 (each token backed by one ounce of gold)
- Gold Price (June 30, 2025): $3,303.14/ounce
- XAU₮ Market Capitalization: $814,304,375
- Sold Tokens: 186,879.510000 XAU₮
- Available Tokens for Sale: 59,644.820000 XAU₮
- Fair Market Value of Sold Token Support: $617,289,185
- Fair Market Value of Unsold Token Support: $197,015,191
Currently, Tether Gold’s market capitalization has surpassed $800 million, closely tied to the market value of physical gold. Over the past 12 months, the price of XAU₮ has risen by 40%, consistent with the performance of spot gold.
Increasing Demand for Gold Amid Macroeconomic and Geopolitical Turmoil
Despite cryptocurrency investors long heralding Bitcoin as “digital gold,” physical gold remains the ultimate safe-haven asset for investors during uncertain times. According to data from the World Gold Council (WGC), global central banks cumulatively purchased over 1,000 tons of gold in 2024, marking the third consecutive year of surpassing this milestone. The WGC also noted that the vast majority of central bank leaders expect gold reserves to continue increasing over the next 12 months.
Christopher Gannatti, Head of Research at a think tank, pointed out, “This is not normal. Central banks have been net sellers of gold for decades. Now they are starting to accumulate it again.” He added, “In a world of rising geopolitical risk and currency weaponization, gold is one of the few assets that can circulate well across borders and regimes.”
Institutional investors are also following suit, injecting billions into gold ETFs in the second half of 2024. This momentum continued into 2025, with gold ETF inflows reaching the highest level in five years, increasing physical gold holdings by 397.1 tons.
In today’s environment, led by BRICS nations accumulating gold, the debate around commodity-backed digital currencies, and declining confidence in fiat currency systems, Tether Gold has emerged as a reliable, compliant, and modern alternative to traditional gold ownership.
“Tether Gold represents the perfect blend of tradition and innovation,” said Tether CEO Paolo Ardoino. “Through XAU₮, we provide individuals and institutions around the world the ability to hold, transfer, and store gold-backed value with full assurance, uncompromising support, compliance, and practicality.”
The rapid growth in demand is primarily driven by escalating geopolitical and economic concerns, including U.S. President Trump’s trade war, which has exacerbated worries about economic instability and potential recession. Economist Peter Schiff also emphasized ongoing inflation risks as a key driver of gold’s appeal.
Inflationary pressures in the U.S. have resurfaced, with the Federal Reserve expected to accelerate price increases in the second half of the year as tariffs raise costs for producers and consumers. This outlook has prompted a cautious stance in monetary policy, with Morningstar Senior U.S. Economist Preston Caldwell noting that he has “delayed his interest rate cut expectations” in light of these inflation trends.
As the world rethinks the nature of money, Tether Gold stands ready as a safe-haven asset and a functional, transferable reserve asset for global users, with its familiar asset and forward-looking form.
References: Tether, Cointelegraph