XAU₮ surpassed the $4 billion milestone: how Tether Gold became the leader of the gold stablecoin market

Tether has officially announced a major milestone in the development of its gold asset program. According to ChainCatcher, the Tether Gold (XAU₮) token now controls more than half of the global gold stablecoin market, and the project’s market capitalization has exceeded $4 billion USD. This achievement highlights the growing demand for digitized gold assets within the cryptocurrency ecosystem and expands opportunities for investors seeking stability backed by real assets.

Reserve Scale and XAU₮ Market Position

By the end of 2025, the project demonstrates impressive figures: total physical gold reserves amount to 520,089.35 troy ounces, and the number of XAU₮ tokens in circulation nearly matches this figure — 520,089.3 XAU₮. The project’s market capitalization reached $2.25 billion USD, with 409,217.64 tokens already issued, and remaining liquid reserves totaling 110,871.66 units. These numbers indicate active growth in interest toward gold stablecoins as an alternative asset class.

Mechanism 1:1 and Reserve Transparency

A key advantage of XAU is its backing model: each XAU₮ token is supported by exactly one troy ounce of physical pure gold. This 1:1 reserve system guarantees full transparency and a direct link between the digital asset and its tangible equivalent. It provides users with confidence in the true value of their assets and eliminates the possibility of over-issuance, which often concerns traditional investors.

Gold Stablecoins: A New Market Trend

Tether Gold’s success in capturing half of the gold stablecoin market reflects a broader trend in the cryptocurrency industry. Investors increasingly turn to stablecoins backed by real assets as a way to hedge against the volatility of traditional cryptocurrencies. XAU₮ stands out as the most scalable and liquid option in this segment, allowing it to remain a market leader in gold stablecoins and set development trends for the industry.