What could affect the price of XAUt?
The price of Tether Gold (XAUt) depends on three main factors: gold’s price changes, Tether’s management of the gold backing the token, and how much interest there is in using crypto as a form of “digital gold.”
- Gold Price Sensitivity – XAUt’s value moves closely with the price of physical gold, which has fluctuated about ±15% this year and currently stands around $4,110 per ounce.
- Custodial Risks – The token’s value depends on Tether’s ability to securely hold and redeem the actual gold backing XAUt.
- Competition from Real-World Assets (RWA) – Other tokenized gold products like PAXG compete for investors and market share.
Deep Dive
1. Gold Market Dynamics (Mixed Impact)
XAUt is designed to match the price of real gold ounce-for-ounce. Over the past year, gold’s price has increased nearly 50%, but it can also experience sudden drops, like a 6.5% fall on October 21, 2025. Factors influencing gold’s price include inflation concerns, worries about U.S. debt, and buying activity from central banks, especially in BRICS countries. The total market value of tokenized gold reached $4.03 billion in October 2025, with XAUt holding about $1.01 billion and PAXG around $1.3 billion.
What this means: If gold prices rise due to economic uncertainty, XAUt benefits as a “safe haven” asset. However, sharp declines in gold’s price can negatively impact XAUt’s value.
2. Custodial Trust & Regulatory Scrutiny (Bearish Risk)
Tether stores 246,524 XAUt tokens, backed by roughly 7.66 tons of physical gold kept in Swiss vaults. Critics, including well-known crypto figures like CZ, warn that tokenized gold depends heavily on trust in the custodian holding the gold, calling it a “trust-me-bro” asset (The Block). New regulations, such as proposed U.S. stablecoin rules, could require Tether to reduce its gold reserves or change how it operates.
What this means: If audits reveal problems or if there are delays in redeeming tokens for gold—especially during geopolitical tensions—investors might sell off XAUt. Still, Tether’s large gold reserves (valued at $8 billion) and control over the gold supply chain (from mining to refining) help build trust.
3. Real-World Asset (RWA) Adoption (Bullish Catalyst)
In October 2025, Tether teamed up with Antalpha to raise $200 million aimed at expanding a tokenized gold treasury for institutional investors. XAUt’s monthly transfer volume reached $8.6 billion, with large investors (“whales”) purchasing $12.1 million worth of XAUt on October 15 (Binance News).
What this means: Growing interest in tokenizing real-world assets like gold (which has increased 36% month-over-month) could boost demand for XAUt. However, competition from other tokens like PAXG and regulatory challenges around moving gold-backed tokens across borders may limit growth.
Conclusion
XAUt’s value largely follows gold’s role in the global economy but also faces unique risks tied to the crypto world, such as reliance on Tether’s custodial practices and regulatory changes. While demand from institutional investors and gold’s reputation as a safe investment support XAUt, its centralized nature means it depends heavily on Tether’s operations.
Will rising gold prices outweigh concerns about trusting “on-chain” gold? Keep an eye on Tether’s audit transparency and how closely XAUt’s price tracks physical gold.
What are people saying about XAUt?
Tether Gold’s digital vaults are buzzing with activity—from mining investments to big investor moves. Here’s the quick summary:
- Vertical integration buzz – Tether’s $200M+ investment in gold mining shows confidence in long-term growth
- Exchange competition – Listings on Kraken and DeriW make Tether Gold easier to access, backed by proof of 7.66 tons of gold reserves
- Big buyer alert – Over $30M worth of Tether Gold bought by major crypto investors as gold nears $4,200
- Regulatory moves – Efforts to comply with the GENIUS Act aim to attract U.S. institutional investors
In-Depth Look
1. Tether’s Mining Expansion Signals Confidence
“Investing $200M+ in gold mining and royalty companies to combine physical and digital gold”
– @Tether_to (3.2M followers · 12.1K impressions · Sept 5, 2025)
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What this means: Tether is investing heavily in gold mining companies like Elemental Altus and exploration projects. This helps them control the supply chain, which could lower storage costs for Tether Gold (XAUt) and create new income sources. This is a positive sign for long-term stability but raises questions about centralization since Tether is gaining more control.
2. New Derivatives Listings Increase Trading Options
“XAUT/USDT perpetual contracts with 50x leverage now available—no gas fees, instant trades”
– @DeriWOfficial (891K followers · 4.7K impressions · Oct 1, 2025)
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What this means: Offering derivatives with high leverage attracts experienced traders and boosts market liquidity. However, 50x leverage can lead to bigger price swings if gold prices drop from the current $4,110 level.
3. Large Investors Are Buying More Tether Gold
“$30M+ worth of XAUt bought by major holders casualpig.eth and 0xdfcA in one week”
– @WhaleInsider (620K followers · 8.3K impressions · Oct 15, 2025)
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What this means: Big investors are buying more Tether Gold as gold prices approach $4,200, signaling growing interest from institutions looking for protection against inflation. Keep an eye on redemption requests, as high demand for physical gold could put pressure on reserves.
4. Regulatory Compliance Efforts Underway
“Tether aims for Big Four audit to meet GENIUS Act standards—possible U.S. expansion in 2026?”
– @argosaki (310K followers · 2.1K impressions · Oct 9, 2025)
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What this means: Tether is seeking audits from top firms like Deloitte or EY instead of its current auditor, BDO Italia. This could open doors for partnerships with ETFs but might also reveal weaknesses in how reserves are managed. The impact remains uncertain until audit results are released.
Conclusion
Overall, sentiment around Tether Gold (XAUt) is positive, driven by Tether’s expanding gold-related activities and uncertain economic conditions. However, risks remain around audits and physical gold redemptions. Watch the $4,200 gold price level closely—if it stays above that, it could lead to more institutional investments in tokenized gold. Could Tether’s mining investments mean XAUt will soon be used as collateral for loans backed by commodities? Time will tell.
What is the latest news about XAUt?
Tether Gold is at the center of a heated discussion about whether tokenized gold is truly trustworthy, all while reaching new highs in market value. Here’s what’s happening:
- CZ vs. Schiff Debate (October 23, 2025) – Binance’s founder criticizes tokenized gold as “trust-me-bro” assets, questioning their reliability.
- Market Cap Milestone (October 23, 2025) – The tokenized gold market hits $3.75 billion, led by Tether Gold (XAUt) and PAX Gold (PAXG).
- Whale Activity (October 15, 2025) – Large investors bought over $30 million worth of XAUt during a surge in gold prices.
Deep Dive
1. CZ vs. Schiff Debate (October 23, 2025)
Overview: Changpeng “CZ” Zhao, founder of Binance, debated with gold supporter Peter Schiff about how decentralized tokenized gold really is. Schiff promotes a blockchain platform that lets users digitally own and redeem physical gold. CZ argues that because these tokens depend on third-party vaults to hold the actual gold, they aren’t truly decentralized—they’re more like “trust-me-bro” tokens that require trust in others rather than the blockchain itself.
What this means: This debate points out a key challenge with tokenized commodities: the need to trust custodians who hold the physical assets, which goes against the core idea of decentralization in crypto. While Tether Gold (XAUt) benefits from gold’s reputation as a safe investment and has a strong market backing of $1.01 billion, concerns about trusting custodians could slow down wider acceptance. (Yahoo Finance)
2. Market Cap Milestone (October 23, 2025)
Overview: The total market value of tokenized gold reached $3.75 billion, with Tether Gold (XAUt) and PAX Gold (PAXG) leading the way. The price of XAUt closely follows the spot price of physical gold, which hit a record $4,360 per ounce in early October before settling around $4,100.
What this means: XAUt’s nearly 50% gain over the past year shows strong demand for gold as a way to protect against economic uncertainty. However, its recent weekly drop of about 5% reflects gold’s natural price swings, showing that while it can be a stable store of value, it also carries some risk. (The Block)
3. Whale Activity (October 15, 2025)
Overview: Data from Lookonchain shows that two major crypto investors, often called “whales,” bought more than $30 million worth of XAUt in October. This buying happened as gold prices rose to $4,218 per ounce, driven by global political tensions and worries about inflation.
What this means: Interest from big investors in tokenized gold is growing, with XAUt’s daily trading volume reaching $640 million. Still, the fact that the physical gold is stored in centralized vaults remains a sticking point for those who prefer fully decentralized finance solutions. (Coinspeaker)
Conclusion
Tether Gold’s future depends on balancing the traditional trust people have in gold with the blockchain’s promise of trustless transactions. While more people are using tokenized gold, debates about custodial trust and gold’s price ups and downs remain challenges. The big question is whether clearer regulations for tokenized assets will help XAUt become a bigger part of decentralized finance, or if concerns about custodians will hold it back.
What is expected in the development of XAUt?
Tether Gold is focusing on making its product more accessible and appealing to big financial institutions.
- Entering the U.S. Market (Q4 2025) – Working to meet U.S. regulations and complete audits to expand in the United States.
- Expanding to More Blockchains (2026) – Bringing Tether Gold (XAUt0) to popular networks like Polygon and Solana.
- Services for Institutions (2026) – Teaming up with Antalpha to offer gold-backed loans and secure vault services.
Deep Dive
1. Entering the U.S. Market (Q4 2025)
Overview: Tether plans to launch in the U.S. under new rules called the GENIUS Act. They aim to be recognized as a stablecoin issuer and will undergo a major audit by a top accounting firm like Deloitte to prove they have enough gold backing their tokens (The Block).
What this means: This move could increase trust and demand for Tether Gold (XAUt) in the U.S., especially from large investors. However, there could be delays or issues if regulators raise concerns or audits find problems.
2. Expanding to More Blockchains (2026)
Overview: After launching XAUt0, an omnichain version of Tether Gold on the TON blockchain in June 2025, Tether plans to bring it to other popular blockchains like Polygon and Solana. They will use LayerZero’s OFT technology to make this possible (Coin Edition).
What this means: This expansion should make it easier for users to trade and use Tether Gold across different blockchain platforms, improving liquidity and integration with decentralized finance (DeFi) apps. However, it depends on the security of LayerZero’s technology, which carries some technical risks.
3. Services for Institutions (2026)
Overview: Tether is partnering with Antalpha to create a $200 million digital asset treasury company. This company will focus on offering loans backed by Tether Gold and managing physical gold vaults in financial centers like Singapore (Bloomberg).
What this means: This could boost Tether Gold’s use among big financial players by providing more ways to use gold-backed tokens as collateral. Still, since Tether controls how tokens are redeemed for physical gold, there are some risks related to centralization.
Conclusion
Tether Gold is working hard to meet regulations, connect across multiple blockchains, and offer financial products tailored for institutions. These efforts aim to strengthen its position as a link between real gold and digital finance. The big questions are whether its U.S. expansion and cross-chain strategy will lead to wider acceptance of tokenized gold and other commodities.
What updates are there in the XAUt code base?
In 2025, Tether Gold (XAUt) enhanced its technology to work smoothly across multiple blockchains while boosting security.
- Omnichain Gold with XAUt0 (June 2, 2025) – Introduced cross-chain transfers using LayerZero’s OFT standard.
- Integration with TON Blockchain (June 3, 2025) – Launched on Telegram’s TON blockchain to reach millions of users.
- Polygon Integration (August 27, 2025) – Enabled easy movement of liquidity within popular DeFi platforms.
Deep Dive
1. Omnichain Gold with XAUt0 (June 2, 2025)
What happened: XAUt0 lets Tether Gold move directly between different blockchains without needing bridges. This reduces risks and makes the system less fragmented.
The upgrade uses LayerZero’s Omnichain Fungible Token (OFT) technology, which “burns” tokens on one blockchain and “mints” them on another. This avoids the problems of wrapped tokens while keeping the gold backing fully intact—each token is still backed 1:1 by LBMA-certified gold stored securely in Swiss vaults.
Why it matters: This is great news for XAUt holders because they can now use gold-backed tokens safely across more than 40 blockchains. It increases how useful the tokens are, especially in decentralized finance (DeFi), without losing the ability to redeem them for real gold. (Source)
2. Integration with TON Blockchain (June 3, 2025)
What happened: XAUt0 was launched on Telegram’s TON blockchain, giving over 900 million Telegram users easy access through the Telegram Wallet.
TON was chosen because it can handle over 100,000 transactions per second and fits well with Tether’s goal of making gold ownership borderless. Users can now hold, send, or stake XAUt0 tokens directly within Telegram.
Why it matters: While this might not immediately boost XAUt’s value, it’s a positive step for the future. It opens the door to a huge user base, which could lead to wider adoption of tokenized gold over time. (Source)
3. Polygon Integration (August 27, 2025)
What happened: XAUt0 became available on Polygon, a popular blockchain known for low fees and strong DeFi activity.
Developers can now add XAUt0 to lending, borrowing, or payment apps on Polygon without needing bridges that rely on third parties. Since launch, LayerZero has supported over $10.5 billion in cross-chain transactions.
Why it matters: This is a positive development for XAUt because Polygon’s partnerships with big brands like Starbucks and Nike could help bring real-world uses for gold-backed tokens, increasing their demand and utility. (Source)
Conclusion
Tether Gold’s 2025 upgrades focus on making the token work seamlessly across multiple blockchains, especially in fast-growing networks like TON and Polygon. They keep the gold fully backed and redeemable, balancing innovation with security. The big question remains: will the growth of cross-chain tokenized real-world assets (RWAs) outpace regulatory challenges?