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Tether Gold Surges as Institutions Seek Safe Haven in Tokenised Bullion
- Central banks are driving gold demand, acquiring over 1,000 metric tonnes for a third straight year.
- Institutions added US$38 billion (AU$57.78 billion) into gold ETFs in H1 2025, reinforcing a move to safety.
- Inflation fears and policy uncertainty continue to fuel demand for gold as a cross-border, apolitical store of value.
As gold prices hit historic highs in 2025, Tether Gold (XAUt), a blockchain-based gold token, has drawn increased interest from both central banks and institutional investors seeking stable assets in a volatile climate. The token, backed by 7.66 tonnes of physical gold and with over 259,000 circulating units, now boasts a market cap above US$800 million (AU$1.22 billion).
The value of XAUt, which mirrors the spot price of gold, has surged by 40% over the past 12 months. With physical gold trading just below US$3,400 (AU$5,169) per ounce, the token provides investors with a digitised form of bullion offering similar security and improved liquidity.
Related: Gold Advocate Peter Schiff Says Bitcoin Beats Ethereum as a Store of Value
Global Forces Behind the Bullion Boom
Central banks have led the gold-buying spree, acquiring more than 1,000 metric tonnes in 2024 – making it the third consecutive year of net purchases on that scale. The World Gold Council reports that a majority of monetary authorities plan to increase gold holdings over the next year.
This behaviour marks a clear break from past decades, when central banks were consistent net sellers. According to WisdomTree’s Christopher Gannatti, they are now accumulating gold due to heightened geopolitical risks and concerns about the political use of currency systems.
The institutional sector has followed suit, contributing to US$38 billion (AU$57.78 billion) in gold ETF inflows during the first half of 2025, lifting ETF holdings by 397.1 metric tonnes. The movement is underpinned by fears of inflation, recession, and global economic instability.
Tether Gold is traded on major platforms like Bybit, Bitfinex, KuCoin and Maxbit in Thailand, and has recently been launched as an omnichain asset on The Open Network via Tether’s USDT0 liquidity solution.
Related: Tether Eyes US Institutional Launch Following GENIUS Act Approval
Author
Rachel Lourdesamy
Rachel is a freelance writer based in Sydney with experience within financial services, marketing, and corporate communications in the APAC region. An avid reader and a graduate of the University of Sydney, she covers topics including business, finance and human interest.
