What could affect the price of XAUt?
Tether Gold (XAUt), a digital version of gold, is influenced by global economic trends and growing crypto use.
- Gold Price Changes – Fluctuations in physical gold prices directly affect XAUt’s value.
- Institutional Support – Tether’s involvement in the gold supply chain strengthens the token’s backing.
- Regulatory Challenges – New rules could impact how users redeem XAUt and trust its storage.
Deep Dive
1. Gold Price Anchor (Mixed Impact)
Overview: XAUt’s value follows physical gold prices, which reached record highs above $4,500 per ounce in December 2025. This rise was driven by central banks buying over 1,000 tons of gold this year and investors seeking protection against inflation. However, technical indicators suggest gold might be overbought, with resistance around $4,644 per ounce.
What this means: If gold demand stays strong, XAUt could rise to $4,800–$5,000. But if gold prices drop 5-10% (Bloomberg), holders of XAUt might sell to lock in profits, causing token prices to fall.
2. Tether's Gold Ecosystem (Bullish Impact)
Overview: Tether owns more than 80 tons of corporate gold (Reuters) and has invested in mining companies like Elemental Altus Royalties (31.9% stake). They also launched new XAUt0 tokens on the TON blockchain, making the token accessible to 900 million Telegram users.
What this means: By controlling parts of the gold supply chain, Tether lowers risks related to third parties. Increased trading across different blockchains (a 24% volume increase in November 2025) could push XAUt’s market value above $2 billion if gold prices stay strong.
3. Regulatory & Custody Risks (Bearish Impact)
Overview: El Salvador has approved XAUt as a compliant digital gold asset. However, proposed U.S. regulations under the GENIUS Act (CoinDesk) could complicate how stablecoins like XAUt manage their reserves. Currently, 93% of XAUt’s gold is stored in a single vault in Switzerland.
What this means: Any issues with vault audits or pauses in redemption—similar to the 2023 freeze of Paxos’ PAXG token—could cause a 15-20% drop in XAUt’s price, despite claims that each token is backed 1:1 by physical gold.
Conclusion
XAUt’s future depends on how gold’s global economic story plays out alongside risks unique to crypto assets. While Tether’s investments in mining and blockchain upgrades offer growth potential, the token remains sensitive to gold’s price swings and changing regulations. The big question: will gold’s current rally outshine the expected rise of Bitcoin and other cryptocurrencies in 2026?
What are people saying about XAUt?
Tether Gold (XAUt) combines the flexibility of cryptocurrency with the lasting value of gold, sparking interesting discussions:
- Big holders dominate – 15% of the supply is held in just 6 wallets
- Signs of a price jump – technical indicators like RSI at 82 and ADX show strong momentum
- Gold’s price boost helps XAUt – market value nears $1.7 billion as gold hits record highs
Deep Dive
1. Insider Holdings Raise Concerns 🐋
According to @OnchainPolice, 15% of Tether Gold’s supply is concentrated in only 6 wallets.
See original tweet
What this means: This level of concentration can be worrying for those who value decentralization because it could lead to price manipulation. However, it also reflects how big institutions accumulate assets.
2. Technical Indicators Point to Strong Momentum 📈
@cryptolevier notes that the Relative Strength Index (RSI) is at 82 and the Average Directional Index (ADX) is 53, suggesting a potential breakout above $4,489.
See original tweet
What this means: These technical signals are bullish, indicating strong upward momentum. But since RSI above 70 can mean the asset is overbought, a price pullback might happen if trading volume slows down.
3. Physical Gold Backing Confirmed 🏦
@Tether_to reports that Tether Gold is backed by 7.66 tons of physical gold stored securely in Swiss vaults, supporting 246,524 XAUt tokens.
See original tweet
What this means: This is a positive sign that each token is backed 1:1 by real gold. However, the minimum redemption amount is quite high (430 XAUt, roughly $1.93 million), which limits access for everyday investors.
Conclusion
Overall, the outlook for Tether Gold (XAUt) is cautiously optimistic. It benefits from gold’s reputation as a safe investment but faces concerns about centralized holdings. Technical trends and growing institutional interest, such as Antalpha’s $200 million treasury fund investment, suggest potential gains ahead. Keep an eye on the gold spot price, as XAUt’s price closely follows gold with a 90-day correlation of 0.94, according to CoinMetrics. The big question remains: will global economic worries continue to support this token’s value?
What is the latest news about XAUt?
Tether Gold (XAUt) is benefiting from gold’s historic price surge, with growing interest from big investors and integration into decentralized finance (DeFi) platforms driving its momentum. Here are the key updates:
- Gold Token Market Tops $4 Billion (Dec 23, 2025) – XAUt reached $4,425, tracking physical gold’s record high.
- DeFi Total Value Locked (TVL) Boosts XAUt (Dec 23, 2025) – XAUt’s TVL jumped 249% to $2.25 billion thanks to growth in real-world asset (RWA) protocols.
- DWF Labs Begins Physical Gold Trading (Dec 23, 2025) – Crypto market maker DWF Labs completed a 25kg gold bar trade, signaling wider adoption of precious metals in crypto markets.
Deep Dive
1. Gold Token Market Tops $4 Billion (December 23, 2025)
Overview:
Tether Gold (XAUt) hit a new high of $4,425, closely following physical gold’s price of $4,381 per ounce. This pushed the total market value of tokenized gold assets to $4.38 billion. The rise reflects strong buying from institutional investors and steady price support above previous resistance levels.
What this means:
XAUt’s price movement shows that gold remains a trusted asset during uncertain times, especially as a hedge against geopolitical risks. The token’s stability and accessibility through blockchain technology make it attractive to institutions treating it as a long-term reserve, not just a speculative investment. (CoinMarketCap)
2. DeFi Total Value Locked (TVL) Boosts XAUt (December 23, 2025)
Overview:
Protocols that bring real-world assets (like gold) into DeFi have fueled a comeback in the sector during 2025. XAUt’s TVL surged 249% to $2.25 billion, with growth seen in lending, staking, and tokenized commodity platforms during the last quarter.
What this means:
XAUt is becoming a key asset in DeFi lending and yield strategies, combining gold’s stability with blockchain’s flexibility. This growing institutional use could make XAUt less tied to the ups and downs of typical cryptocurrencies, offering a more stable option for investors. (CoinMarketCap)
3. DWF Labs Begins Physical Gold Trading (December 23, 2025)
Overview:
Crypto market maker DWF Labs completed its first trade involving a 25kg physical gold bar and plans to expand into silver and platinum. Unlike others who tokenize assets, DWF used traditional custody methods for this transaction.
What this means:
Although this trade doesn’t involve XAUt directly, it highlights increasing crypto investment in precious metals. This trend supports gold’s reputation as a safe asset during economic uncertainty and indirectly strengthens XAUt’s position as a link between digital tokens and real-world value. (CoinMarketCap)
Conclusion
Tether Gold (XAUt) is riding the wave of gold’s price surge while solidifying its role in the growing DeFi market for real-world assets. With institutional players like DWF Labs expanding their commodity exposure and XAUt’s TVL reaching $2.25 billion, the token blends traditional safe-haven qualities with blockchain advantages. The big question for 2026: Will XAUt challenge gold ETFs as the go-to digital gateway for investing in bullion?
What is expected in the development of XAUt?
Tether Gold’s roadmap is focused on growing its usefulness, meeting regulations, and expanding across multiple blockchain networks.
- Entering the U.S. Market (2026) – Working to meet U.S. regulations under the GENIUS Act.
- Expanding Across Blockchains (2026) – Launching XAUt0 on more blockchains beyond TON.
- Integrating Gold Supply Chain (Ongoing) – Investing in gold mining and refining to strengthen its gold backing.
Deep Dive
1. Entering the U.S. Market (2026)
Overview: Tether plans to enter the U.S. market by following the GENIUS Act, aiming to be recognized as a foreign stablecoin issuer. They also plan to get audited by one of the Big Four accounting firms (The Block). This means improving transparency and meeting U.S. standards for holding gold reserves.
What this means: This move could attract large institutional investors but comes with regulatory challenges. If successful, it could open access to a market worth over $1.3 trillion. However, delays could slow down growth.
2. Expanding Across Blockchains (2026)
Overview: XAUt0, a version of Tether Gold that works across blockchains, launched on TON in June 2025. The plan is to bring it to other blockchains like Polygon and Solana using LayerZero’s OFT standard to connect liquidity (Crypto.news).
What this means: This could improve liquidity and make it easier to use Tether Gold in decentralized finance (DeFi). However, if adoption is uneven or if there are security issues with LayerZero, growth could be limited.
3. Integrating Gold Supply Chain (Ongoing)
Overview: Tether is investing over $100 million in gold mining, refining, and royalty companies like Elemental Altus to have more control over its gold reserves (Financial Times).
What this means: This strengthens the stability and reliability of Tether Gold’s backing. Still, mining operations come with risks, including geopolitical issues, such as those related to Swiss vaults where gold is stored.
Conclusion
Tether Gold is working to connect traditional gold markets with the crypto world by focusing on regulatory compliance, multi-blockchain support, and supply chain control. The big question is whether its gold-backed token will outperform competitors like PAXG in today’s unpredictable market.
What updates are there in the XAUt code base?
Tether Gold’s latest software updates focus on making it easier to use across multiple blockchains and building a secure, reliable system for large investors.
- Omnichain Upgrade with XAUt0 (June 2025) – Now you can transfer gold-backed tokens smoothly across more than 40 blockchains using LayerZero’s OFT technology.
- Integration with TON Blockchain (June 2025) – XAUt0 launched on TON, the blockchain linked to Telegram, opening gold trading to millions of users.
- Ongoing Security Checks & DVN Verification – Added extra layers of security with decentralized oracle networks and regular audits to keep transfers safe.
Deep Dive
1. Omnichain Upgrade with XAUt0 (June 2025)
What happened: The new XAUt0 token lets Tether Gold move directly between blockchains like Ethereum and TON without needing “wrapped” tokens, which are often less secure.
Using LayerZero’s OFT protocol, tokens are destroyed on the original blockchain and recreated on the new one, avoiding common risks found in bridges. Each XAUt0 token is backed 1:1 by real gold stored in Swiss vaults, with regular audits by BDO Italia to confirm reserves.
Why it matters: This upgrade is great news for XAUt holders because it reduces liquidity issues and opens up new uses like lending gold tokens on different platforms. It also makes it easier for big investors to adopt, while users can access gold anytime without worrying about third-party custody.
(Source)
2. Integration with TON Blockchain (June 2025)
What happened: XAUt0 was first launched on TON, a blockchain connected to Telegram, which has over 900 million users worldwide.
The team adjusted smart contracts to fit TON’s fast and scalable system, allowing users to trade gold tokens directly inside the Telegram Wallet app. This was done in partnership with The Open Platform to make cross-chain transactions smoother.
Why it matters: This move is positive for XAUt because it brings gold trading to everyday users through a popular messaging app. It blends social interaction with real asset trading, though its success depends on how many people start using TON.
(Source)
3. Ongoing Security Checks & DVN Verification
What happened: To keep cross-chain transfers safe, LayerZero uses a Dual Verification Node (DVN) system, which has been audited by security firms Halborn and Code4rena.
This system uses multiple independent oracles, like Chainlink and Supra, to confirm transactions, reducing the risk of hacks or errors. Tether also offers a bug bounty program with rewards up to $250,000 for finding serious security issues.
Why it matters: This is reassuring for institutional investors who want strong security before committing funds. These protections help prevent the kind of bridge hacks that have affected other cross-chain tokens.
(Source)
Conclusion
Tether Gold is evolving its technology to work seamlessly across many blockchains while maintaining top-level security. This positions XAUt0 as a potential “digital gold standard” that bridges traditional gold markets with decentralized finance. With gold prices near historic highs, these upgrades could boost XAUt’s role in the growing multi-chain ecosystem.