Tether Gold price exceeds $3.3 billion as demand for tokenized gold reaches record levels

TLDR

• Tether Gold (XAUt) market cap surpassed $3.3 billion in Q1 2026, up 36% QoQ
• Physical gold reserves rose from 520,089 to 707,747 troy ounces, all of which are held in Switzerland.
• Global demand for gold reached a record high of $193 billion in the first quarter, a 74% increase in value year-on-year.
• Demand for bullion and coins rose 42% to 474 tons, the second highest quarter on record.
• XAUt owns more than half of the tokenized gold market; PAX Gold’s closest competitor is at $2.2 billion

---

Tether Gold saw its reserves grow by 36% in the first quarter of 2026, with actual gold holdings rising from 520,089 to 707,747 fine troy ounces. The product’s market value exceeded $3.3 billion by March 31, according to the company’s latest reserves report.

Tether Gold surpasses $3.3 billion as reserves rise 36% in Q1, driven by flight into hard assets

Read more:https://t.co/9gEALbPQBQ

— rope (@ rope) May 4, 2026

Each XAUt token represents one troy ounce of physical gold. The reserves are stored in Switzerland and meet the London Good Delivery Standards set by the London Bullion Market Association.

Tether said tokens are only issued after physical gold bullion completes the custody receipt process. Each code is associated with a specific bar that contains a serial number, purity level, and registered weight.

A sample of spare bars is tested every quarter by an independent third party. This process supports the fallback reporting model behind the product.

pregnancy CEO Paolo Ardoino said XAUt “gives gold a new form of utility” by combining physical exposure with blockchain-based transfers and transparency.

The total market capitalization of XAUt reached $3,303,805,880 at the end of the first quarter. Tokens sold amounted to 559,598 XAUt, with 148,148 tokens available for sale.

XAUt now represents more than half of the tokenized gold market. Its closest competitor, PAX Gold, issued by Paxos and overseen by the New York State Department of Financial Services, has a market capitalization of about $2.2 billion.

Record quarter for gold demand

Global gold demand, including over-the-counter activity, reached 1,231 tonnes in the first quarter of 2026, up 2% from the same period a year earlier. The value of this demand rose by 74% to a record level of $193 billion, driven by rising prices.

Demand for bullion and coins rose 42% to 474 tons, the second highest quarterly volume on record. Asian investors led purchases across gold investment products during this period.

Central banks bought 244 tons of gold on a net basis, an increase of 3% year-on-year. gold Demand for the technology rose 1% to 82 tons, largely supported by the growth of AI infrastructure.

Order volumes for jewelery fell by 23% as record prices impacted purchases. However, total spending on jewelry rose 31% in value terms, reflecting how higher prices offset lower volumes.

Why is tokenized gold growing?

Gold token products allow investors to gain exposure to physical gold without managing storage or logistics. It also allows gold to be traded around the clock and transferred globally, which is not possible in traditional bullion markets.

Tether attributed XAUt’s growth to a broader move toward hard assets as investors responded to geopolitical tensions and shifting expectations around Federal Reserve policy.

Gold prices briefly rose above $5,500 an ounce before retreating as expectations of interest rate cuts faded and the US dollar strengthened. Gold was trading at around $4,500 per ounce at the time of writing.

Year-to-date, the USD price of XAUt has risen by 4.37%, according to Yahoo Finance data. The broader real assets market is worth approximately $31 billion.