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- Tether purchased 27 metric tons of gold in Q4 2025 alone.
- Tether Gold (XAUT) market cap reached $2.24B in early 2026.
- Competition from Pax Gold and Kinesis is rising fast.
Tether is doubling down on gold as macro uncertainty pushes investors toward hard assets and tokenized alternatives. The stablecoin giant disclosed in its latest transparency report that it bought 27 metric tons of gold in the fourth quarter of 2025, extending a buying streak that now rivals the pace of some central banks.
The accumulation comes as gold prices continue a historic run, and as demand for tokenized gold products accelerates across crypto markets.
Tether’s Gold Purchases Track Gold’s Historic Rally
Gold delivered a 64% gain in 2025 and has added another 17% so far in 2026, recently surpassing the $5,000 level for the first time. Tether’s Q4 purchases were nearly identical to its Q3 acquisitions, signaling sustained confidence in bullion as a long-term reserve asset.
The company uses its gold holdings to back Tether Gold (XAUT), a token representing ownership of physical gold on a one-to-one basis. According to Tether, every XAUT token in circulation corresponds to an equivalent amount of gold held in reserves.
CEO Paolo Ardoino said Tether Gold now operates at a scale comparable to sovereign gold holders, calling the responsibility “real” as investors increasingly question the durability of traditional monetary systems. He added that XAUT is designed to reduce uncertainty for users seeking stability outside fiat currencies.
Tokenized Gold Demand Surges Past $5 Billion
Rising gold prices have fueled strong growth in tokenized gold products. Tether Gold’s market supply expanded more than threefold in 2025, climbing from roughly $600 million to $1.8 billion by year-end.
Momentum continued into 2026. XAUT’s market capitalization reached about $2.24 billion, posting a 26% increase in January alone. The broader tokenized gold sector has now surpassed $5.2 billion in total market value, highlighting growing interest in blockchain-based exposure to precious metals.
This trend suggests investors are increasingly viewing tokenized gold as a bridge between traditional safe-haven assets and digital finance.
Tether’s Market Share Faces New Competition
Despite strong growth, Tether’s dominance in tokenized gold has slipped. Data from CoinGecko shows that Tether Gold controlled nearly 60% of the market in late 2025. By early 2026, that share had fallen to around 50%.
Pax Gold has emerged as a close competitor with roughly 40% market share, while Kinesis Gold has quickly climbed to nearly 8% after entering the space. The shifting landscape points to intensifying competition as more platforms race to capture demand for blockchain-based gold exposure.
Also Read: Tether Dominates Crypto Protocol Revenue in 2025, CoinGecko Data Shows
Tether’s aggressive gold accumulation reflects a broader shift toward hard assets amid economic and geopolitical uncertainty. While XAUT continues to grow rapidly, rising competition shows that the tokenized gold market is maturing. If gold prices remain elevated, the sector—and the battle for dominance within it—may only intensify.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
