Tether Gold (XAUt), a digital token backed by gold from the leading stablecoin provider Tether, is nearing a market cap of $1.5 billion.
As per the information made available by the company, Tether Gold now has a market valuation of approximately $1.46 billion, underpinned by 966 gold bars totaling 11,693.4 kilograms in weight.
The total supply of minted tokens is noted to be 375,572.25 ounces, with 261,961.71 ounces—valued at around $1.01 billion—currently in circulation, while the remaining 113,610.54 ounces are available for sale.
The increase in the token’s market value corresponds with a surge in gold prices. Recently, spot gold reached an unprecedented high of $3,896.49, marking its seventh week of gains.
Analysts connect this price hike to investors seeking safe havens amidst concerns of a prolonged US government shutdown and rising predictions of the Federal Reserve lowering interest rates.
As gold prices escalate, digital assets like XAUt are witnessing heightened demand, with investors leaning towards tokenized gold for its liquidity and accessibility compared to traditional forms.
As a result, Tether Gold has seen an impressive growth of nearly 46% over the last year and 10% within the past month, securing its position among the top 100 cryptocurrencies globally based on market capitalization.
Tether’s aspirations in the tokenized asset sector extend farther than just the performance of XAUt.
Reports indicate that the USDT issuer is aiming to secure a minimum of $200 million for a new venture called Digital Asset Treasury Company (DATCO), which will concentrate on tokenized gold. It is collaborating with Antalpha, a firm associated with the Bitcoin hardware manufacturer Bitmain.
The DATCO initiative will reportedly hold Tether’s XAUt tokens, facilitating broader participation from institutions in the tokenized gold market.
This new venture builds upon a series of past collaborations between Tether and Antalpha.
In June, Tether acquired an 8.1% equity interest in the firm. By September, the partnership had expanded, enhancing access to XAUt through services related to collateralized lending and vaults across key financial hubs.
These arrangements enable investors to exchange tokens for physical gold bars directly, reinforcing the tangible value of the token.
Additionally, Tether is deepening its involvement in the gold sector by securing investments in mining and royalty companies.
The firm has allocated over $200 million into Elemental Altus, a Toronto-listed company, and is reportedly negotiating with other global mining and royalty entities.
