Tether Gold (XAUT) market capitalization surpasses 2 billion USD: soaring gold prices and institutional demand drive RWA to new heights.

The stablecoin giant Tether announced that its gold-backed token Tether Gold (XAUT) has surpassed a market capitalization of 2 billion USD, reaching approximately 2.1 billion USD, solidifying its position as a cornerstone asset in the realm of physical assets (RWA). This milestone was achieved against the backdrop of soaring global gold prices breaking through 3,850 USD/ounce, demonstrating a strong demand from institutional funds for verifiable hard assets driven by geopolitical turmoil and global inflation. Each token of XAUT is backed 1:1 by physical gold bars stored in Swiss vaults, successfully combining the security of physical gold with the operational convenience of digital tokens.

XAUT market capitalization surpasses 2 billion dollars: A perfect combination of physical gold and digital Token

Tether's gold token Tether Gold (XAUT) announced that its market capitalization has surpassed $2 billion, marking a new height in the growth of real-world assets (RWA) on the blockchain. The token's market capitalization rose from $1.44 billion at the end of the third quarter to approximately $2.1 billion in just a few weeks. The value of Tether Gold is backed by over 375,000 ounces of physical gold reserves, which are stored in Swiss vaults in strict accordance with London Good Delivery standards.

Tether CEO Paolo Ardoino stated: “Tether Gold proves that real-world assets can thrive on-chain without compromise. With gold prices at historical highs and increasing institutional interest in tokenized assets, XAUT represents the future of asset ownership, a combination of physical security and digital freedom.”

The Surge in Gold Prices and the Competitive Landscape of Tokenized Gold Market

The surge in Tether Gold's market capitalization coincides with one of the most dramatic periods of price increases in gold history. Gold prices have surpassed the historical high of $3,850 per ounce, primarily due to ongoing global inflation, deepening geopolitical rifts, and significantly increased gold reserves by central banks worldwide. This “safe-haven” sentiment is directly reflected in the broader tokenized gold market: although the market slightly declined by 2.6% on Tuesday, its total market capitalization remains at $3.72 billion.

In this niche market, Tether Gold's main competitor PAX Gold (PAXG) has a market capitalization of approximately $1.31 billion, while other products like Kinesis Gold are valued much lower, solidifying XAUT's leadership position in the tokenized gold space. According to El Salvador's regulatory framework, Tether Gold, overseen by the entity TG Commodities, maintains an accurate 1:1 peg and still has nearly 140,000 tokens available for sale, demonstrating its significant potential to absorb new demand. Holders retain the right to exchange tokens for physical gold bars and have them delivered to Swiss addresses.

Institutional Momentum: The Strong Endorsement of the RWA Narrative

The milestone of Tether Gold is noteworthy because it occurred after a landmark event in the public market. In early October this year, Antalpha Platform Holding Company led a $150 million funding round aimed at transforming a Nasdaq-listed shell company into Aurelion Inc., a publicly traded entity with Tether Gold as its main reserve asset.

This transaction, supported by Antalpha, Tether's commodities division, and Kiara Capital, represents a deep vote of confidence in the RWA narrative. It effectively creates the first publicly listed company treasury focused on blockchain gold Token as its core asset, adding new institutional legitimacy to the entire RWA space. This event indicates that institutional capital is seeking innovative ways to combine traditional secure assets with the verifiability and operability of blockchain.

Conclusion

Tether Gold's market capitalization has surpassed 2 billion USD, marking an important milestone in the tokenization process of physical assets. In an environment of increasing global macroeconomic uncertainty and rising gold prices, XAUT has successfully provided institutional and individual investors with a secure, transparent, and highly liquid on-chain gold exposure. As publicly traded companies like Aurelion Inc. adopt XAUT as their primary treasury asset, tokenized gold is no longer just a tool for crypto investors, but is becoming a compliant RWA asset recognized by public financial markets. This trend indicates that the digitization of real-world assets is rapidly becoming the next major growth point for blockchain applications.