Tether Gold Market Cap Tops $3.3 Billion, Up 36% on Safe-Haven Demand
- Tether said Tether Gold (XAUt) surpassed a $3.3 billion market capitalization in the first quarter, a 36%% increase from the previous quarter.
- Tether Gold is backed by one troy ounce of physical gold per token, has gained about 4%% this year, and holds more than half of the tokenized gold market by share.
- The market for tokenized real-world assets (RWA) stands at about $31 billion and is increasingly being used to improve access to physical assets such as gold.
Forecast Trend Report by Period
Tether Gold (XAUt), Tether’s gold-backed tokenized asset, has expanded rapidly as investors seek safe-haven assets amid rising macroeconomic uncertainty.
Cointelegraph reported on May 4 that Tether, in its latest report, said Tether Gold’s market capitalization exceeded $3.3 billion in the first quarter. That marked an increase of about 36% from the previous quarter.
Circulating supply totaled 707,741 tokens during the period, with each token backed by one troy ounce of physical gold. Tether attributed the growth to investors shifting into hard assets such as gold amid geopolitical tensions and uncertainty over monetary policy.
Gold prices rose earlier this year on safe-haven demand, but later gave up some gains as expectations for interest-rate cuts faded and the dollar strengthened. Profit-taking by some investors also added to price volatility.
Tether Gold has gained about 4% this year, holding relatively steady. It continues to lead the tokenized gold market with more than half of the sector’s market share.
A key rival is Pax Gold (PAXG), issued by Paxos, with a market capitalization of about $2.2 billion. The two tokens are leading examples of how traditional gold investing is being extended onto blockchain rails.
Markets are also focused on rising demand for tokenized real-world assets, or RWAs. That market is valued at about $31 billion and is increasingly used to broaden access to physical assets such as gold.
