What could affect the price of XAUt?
XAUt’s price moves with gold’s ups and downs, but with extra twists from the crypto world.
- Gold’s big momentum – Gold’s 41% yearly jump supports XAUt’s value (Bloomberg).
- Tether’s gold growth – Over $200 million invested in mining and royalties to back up reserves (Tether).
- Regulatory challenges – U.S. stablecoin rules might put pressure on gold-backed reserves (Cointelegraph).
Deep Dive
1. Gold’s Big Surge (Positive for XAUt)
What’s happening: XAUt is tied to real gold, which hit record prices ($3,550 per ounce in 2025) due to inflation worries and central banks buying over 1,000 tons yearly. The market for tokenized gold grew 260% in 2025, with XAUt holding 35% of that market.
Why it matters: More demand for gold—driven by global risks and weakening traditional currencies—raises XAUt’s minimum value. But if the U.S. dollar strengthens or interest rates rise, XAUt’s gains might slow down temporarily.
2. Tether’s Gold Strategy (Positive for XAUt)
What’s happening: Tether stores 80 tons of gold (worth $8 billion) in Swiss vaults and owns 32% of Elemental Altus Royalties, giving it a share of mining profits. It also launched XAUt0 on TON and Polygon blockchains, allowing trading across different networks.
Why it matters: By controlling everything from mining to storage to token creation, Tether cuts out middlemen, which can lower costs and make XAUt more attractive to big investors.
3. Regulatory Pressure (Mixed Effects)
What’s happening: The U.S. GENIUS Act might limit stablecoins to holding only cash or government bonds, which could force Tether to reduce its gold reserves. On the other hand, El Salvador’s approval of XAUt shows growing acceptance and compliance.
Why it matters: While XAUt is gaining worldwide, U.S. regulations could limit its growth if Tether has to sell off gold holdings.
Conclusion
XAUt’s future depends on how well gold holds up against economic challenges and how Tether handles regulatory hurdles. Growing use by institutions through DeFi platforms like Aave and Curve, plus cross-chain trading, could help smooth out short-term ups and downs. Will gold’s strong rally beat regulatory roadblocks? Keep an eye on Tether’s reserve reports and gold ETF activity.
What are people saying about XAUt?
Tether Gold is gaining attention as it combines the value of physical gold with blockchain technology. Here’s what’s happening:
- Market cap milestone – Tether Gold’s market value surpassed $1.3 billion, placing it among the top 100 cryptocurrencies.
- Gold supply chain investments – Tether invested $205 million in mining and royalty companies.
- DeFi adoption – Tether Gold is being used as collateral in decentralized finance platforms, though liquidity is still a concern.
- Regulatory progress – Efforts are underway to comply with the GENIUS Act, aiming to boost institutional trust.
In-Depth Look
1. Market Cap Breakthrough
According to @WhaleInsider, Tether Gold (XAUt) recently crossed a $1.3 billion market cap, entering the top 100 cryptocurrencies by value.
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What this means: This milestone shows growing interest from institutional investors who see tokenized gold as a safe haven during uncertain economic times. Tether Gold’s price has increased by 41% over the past year, outperforming many other alternative cryptocurrencies.
2. Investments in Gold Mining
@DiarioBitcoin reports that Tether is investing around $100 million to acquire a 37.8% stake in Elemental, a mining company.
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What this means: This move could strengthen Tether Gold’s physical gold reserves, which currently total 7.66 tons. However, the mining industry can be unpredictable, so this strategy carries some risks.
3. Decentralized Finance (DeFi) Adoption
@DefiIgnas notes that trading $1 million worth of Tether Gold experiences a 0.76% slippage, and while it’s accepted as collateral on platforms like Aave, its yields lag behind traditional stablecoins.
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What this means: Tether Gold is gaining traction in DeFi, expanding its use cases. However, its trading volume ($50.8 million in 24 hours) is still much lower than competitors like PAX Gold, indicating liquidity challenges.
4. Regulatory Compliance Efforts
Cointelegraph reports that Tether is working to comply with the GENIUS Act, including audits by major accounting firms, to attract U.S. institutional investors.
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What this means: These regulatory steps could improve transparency and trust, potentially opening access to the $147 billion U.S. gold ETF market. Currently, Tether Gold trades at a slight premium (0.3%) compared to the London Bullion Market Association (LBMA) spot price.
Conclusion
Overall, the outlook for Tether Gold (XAUt) is positive, supported by gold’s strong market position and Tether’s strategic investments. However, liquidity and regulatory compliance remain important factors to watch. Keep an eye on the price difference between Tether Gold and spot gold—if premiums rise above 0.5%, it could indicate overheating. With physical gold prices approaching $3,600 per ounce, tokenized gold options like Tether Gold may attract more interest from crypto investors looking for stability.
What is the latest news about XAUt?
Tether Gold is growing and facing more attention as gold-backed digital tokens become more popular. Here are the key updates:
- $20 Billion Funding & Expansion Plans (September 25, 2025) – Tether is raising $20 billion to expand into areas like commodities, artificial intelligence, and energy, while strengthening the infrastructure behind Tether Gold (XAUt).
- Now Available on Kraken (September 11, 2025) – Tether Gold (XAUt) is now listed on Kraken, making it easier for people to buy and sell this tokenized gold.
- Investing in Gold Mining (September 5, 2025) – Tether is investing in gold mining and related businesses to back XAUt with real physical gold.
Deep Dive
1. $20 Billion Funding & Expansion Plans (September 25, 2025)
Overview:
Tether is planning to raise $20 billion through private investors, valuing the company at $500 billion. The goal is to grow into new industries like AI, energy, and commodity trading. Part of this plan includes expanding Tether Gold (XAUt) by connecting the digital token with actual gold supply chains. Tether also owns 21% of Bitcoin mining company Bitdeer and invests in gold royalty companies like Elemental Altus.
What this means:
This is good news for XAUt because Tether’s broad approach could increase the availability and use of gold-backed tokens, especially among big investors. However, there are risks, including concerns about how transparent Tether is with audits of their gold reserves.
(CoinGape)
2. Now Available on Kraken (September 11, 2025)
Overview:
Tether Gold (XAUt) is now listed on Kraken, a major cryptocurrency exchange. This allows users to trade XAUt directly. The token is available on over 40 blockchain networks and exchanges, and is backed by 7.66 tons of LBMA-certified gold stored securely in Switzerland.
What this means:
Being on Kraken improves how easily people can buy and sell XAUt, making it more accessible to everyday investors. This comes as more people look to gold as a safe investment, with XAUt’s price rising 41% over the past year. Still, XAUt faces competition from other gold tokens like PAXG, and regulators are watching closely to ensure the gold reserves are properly managed.
(Tether Gold on X)
3. Investing in Gold Mining (September 5, 2025)
Overview:
Tether is working on deals to invest in gold mining, refining, and royalty companies to secure more physical gold for backing XAUt. This follows a $105 million investment in Elemental Altus and plans to invest another $200 million in gold-related projects.
What this means:
By investing directly in gold production, Tether could make XAUt more trustworthy because the token would be linked to actual gold mining. However, some traditional gold mining leaders find Tether’s approach unusual and have expressed skepticism.
(The Block)
Conclusion
Tether Gold is working to make XAUt a strong connection between digital assets and real gold by expanding listings, making strategic investments, and entering new industries. While this could boost adoption, success depends on following regulations and being transparent about gold reserves. The big question is whether XAUt can attract institutional investors despite competition from Bitcoin, often called “digital gold.”
What is expected in the development of XAUt?
Tether Gold’s plan focuses on growing its usefulness, following regulations, and connecting with more partners:
- Gold Earn Campaign (Dec 2025) – A program to earn rewards by holding Tether Gold through Telegram’s Wallet app.
- U.S. Market Entry (Q4 2025) – Getting approval to operate in the U.S. under new laws.
- Gold Supply Chain Integration (2026) – Investing in gold mining and refining companies to strengthen its gold backing.
Deep Dive
1. Gold Earn Campaign (Dec 2025)
Overview:
Tether Gold’s Earn Campaign (DeFi Oracle) lets users deposit Tether Gold (XAUt) into wallets linked with Telegram to earn daily compound rewards. The campaign runs until December 30, 2025, and aims to make it easier for everyday users to participate by setting a low minimum deposit of 0.0003 XAUt.
What this means:
This is positive for XAUt because it encourages people to hold onto their coins and use them actively instead of just storing them. However, success depends on whether the rewards can be maintained and how many Telegram users take part.
2. U.S. Market Entry (Q4 2025)
Overview:
Tether plans to enter the U.S. market after the GENIUS Act becomes law, seeking official recognition as a foreign stablecoin issuer (The Block). They also plan to have a Big Four accounting firm audit their reserves to meet U.S. transparency standards.
What this means:
This is somewhat positive – getting regulatory approval could open doors to big investors, but delays or stricter rules (like detailed reserve checks) could slow progress.
3. Gold Supply Chain Integration (2026)
Overview:
Tether is investing over $100 million in gold mining and royalty companies such as Elemental Altus (Financial Times). This move aims to give Tether more control over the gold that backs XAUt.
What this means:
This is positive for the long term – controlling the gold supply chain can reduce risks and improve transparency about reserves. Still, fluctuations in the gold market could affect profits.
Conclusion
Tether Gold is combining the stability of traditional gold with the innovation of cryptocurrency by offering rewards, aligning with regulations, and investing in gold production. The big question is whether this approach will attract enough institutional investors to compete with traditional gold ETFs.
What updates are there in the XAUt code base?
Tether Gold’s latest updates focus on making gold-backed tokens easier to use across different blockchains and improving security for transactions.
- Omnichain XAUt0 Launch (June 2, 2025) – Lets users transfer gold tokens smoothly between blockchains using LayerZero technology.
- TON Integration (June 3, 2025) – Brings tokenized gold to over 900 million Telegram users through the TON blockchain.
- Security Upgrades (June 10, 2025) – Enhanced audits and LayerZero’s validation system keep gold reserves secure and tamper-proof.
Deep Dive
1. Omnichain XAUt0 Launch (June 2, 2025)
What it is: XAUt0 is an upgraded version of Tether Gold that allows gold-backed tokens to move freely across multiple blockchains without needing wrapped tokens or complicated bridges.
Using LayerZero’s OFT standard, XAUt0 combines liquidity by linking Ethereum-based XAUt tokens with new blockchains. Each XAUt0 token represents ownership of one troy ounce of LBMA-certified gold stored safely in Swiss vaults.
Why it matters: This upgrade makes XAUt more useful in decentralized finance (DeFi) activities like lending and arbitrage, while still being backed by real gold. Users can access and use programmable gold anytime, across different blockchain networks.
(Source)
2. TON Integration (June 3, 2025)
What it is: XAUt0 is now available on The Open Network (TON), which powers Telegram’s Wallet. This means Telegram’s 900 million+ users can hold and transfer gold-backed tokens directly in the app.
Thanks to TON’s fast processing speeds (over 100,000 transactions per second), users can enjoy quick and easy gold token transactions with minimal fees.
Why it matters: While this doesn’t immediately affect XAUt’s price, it opens the door for widespread adoption by everyday users and supports social finance features within Telegram.
(Source)
3. Security Upgrades (June 10, 2025)
What it is: XAUt0’s security depends on LayerZero’s decentralized validator networks and regular audits by trusted firms like Zokyo. There’s also a bug bounty program encouraging ethical hackers to find vulnerabilities.
Swiss laws oversee the redemption of tokens for physical gold, providing legal protection for token holders.
Why it matters: Strong security lowers risks for users and institutions, making gold-backed tokens more trustworthy and appealing for large-scale adoption.
(Source)
Conclusion
Tether Gold is evolving to make gold-backed tokens more accessible, secure, and usable across multiple blockchains. This positions XAUt as a key link between traditional gold and decentralized finance. Could omnichain gold tokens pave the way for tokenizing other real-world assets like oil or silver? Time will tell.