TechFlow News, May 5: According to a report by Crowdfund Insider, Tether’s tokenized gold product, Tether Gold (XAU₮), has surpassed $3.3 billion in total market capitalization. Its physical gold reserves grew by 36% in Q1 2026, reflecting investors’ increased allocation to tangible assets amid record-high gold prices and global economic pressures.
Data shows that, as of 23:59 UTC on March 31, 2026, XAU₮ held 707,747.139 troy ounces of physical gold, corresponding to 707,747.090000 circulating tokens—maintaining an exact 1:1 reserve ratio, with each token representing ownership of one troy ounce of gold. Of these, 559,598.640000 tokens have been sold, valued at approximately $2.612 billion; 148,148.450000 tokens remain available for purchase, with a fair market value of approximately $691.6 million, bringing the total market capitalization to $3.3038 billion. The reserve size marks a significant increase from the end of 2025 (520,089.350 troy ounces, valued at approximately $2.25 billion).
The gold is stored in Swiss vaults compliant with the London Bullion Market Association’s (LBMA) London Good Delivery standard. Custodians hold the gold bars on behalf of token holders, who retain direct ownership—not the issuer. Each token corresponds to a specific gold bar, identified by its serial number, purity, and weight, and undergoes quarterly independent audits by third-party experts. The product operates under El Salvador’s Digital Asset Issuance Act, combining Swiss storage, on-chain transparency, and physical gold redeemability.
Paolo Ardoino, CEO of Tether, stated: “Tether Gold demonstrates that tokenized commodities can operate with the same rigor, scale, and reserve discipline as mainstream institutional holdings.”
