Tether Gold’s market capitalization climbed to $2.1 billion in October as gold prices rose and retail demand strengthened in emerging markets, according to Tether CEO Paolo Ardoino. As of September 30, the gold-backed token was supported by approximately 11.6 tonnes of physical gold, with reserves located in Switzerland.
Tether Gold (XAUT) is designed to provide digital exposure to physical gold, offering investors a way to access the metal’s price performance through a tokenized format. The latest increase in market value underscores growing interest in commodity-backed digital assets, particularly among retail investors seeking alternatives during periods of heightened market uncertainty.
The company attributed the uptick to the recent rally in gold and heightened participation from retail users in developing economies. The disclosed reserve details—11.6 tonnes of physical bullion held in Switzerland—highlight the custody framework that underpins the token’s backing.
As gold prices and demand dynamics evolve, market participants will be watching whether interest in gold-backed tokens continues to build, and how issuers maintain transparency around reserves and custody practices.