Tether Gold (XAUT), a tokenized asset that provides investors with ownership of real physical gold, has achieved a new milestone following its market capitalization reaching a new ATH. According to data shared today by digital asset exchange Biconomy, Tether Gold has climbed to $2.2 billion in market cap, a notable performance highlighting the asset’s rising popularity and resilience in the tokenized gold sector.
Developed by Tether, the firm behind USDT stable asset, Tether Gold is a stablecoin pegged to the value of physical gold. Launched in 2020, the token aims to make traditional gold more accessible and beneficial for both institutional and individual investors.
Institutional Demand for XAUT Rising
Tether Gold’s recent remarkable growth is resulting from a blend of network activity and rejuvenated investor enthusiasm. According to last week’s data from crypto analyst Derar-Hadri, the reason for XAUT climbing to a new ATH market cap is due to continued institutional demand for the digital gold.
Last Friday, October 17, 2025, DL Holdings Group Limited, an investment holding company based in Hong Kong, announced an accumulation strategy of Tether Gold as it plans to invest $100 million in buying the tokens over the next 12 months. The acquisition will build on the initial $5 million investment made earlier this year. With these purchases, the firm said it seeks to meet the rising demand from investors for stable, gold-backed tokens like Tether Gold, which give investors a digital alternative backed by real-world value.
Also, on Tuesday, October 14, 2025, Aurelion Global announced its first purchase of $134 million worth of XAUT to be part of its corporate treasury, which is completely made up of Tether Gold. The company is building the first Tether Gold treasury to be listed on the stock market, NASDAQ, combining digital asset management with traditional gold reserves. The move makes the firm the first NASDAQ-listed company to hold digital gold on its balance sheet.
All these token acquisitions mean that large investors are turning to protect the value of their assets using tokenized gold amidst recent market volatility.
Tokenized Gold Yield Opportunities
Last week, tokenized gold tokens surpassed $1 billion in daily trading volume for the first time amid surging prices of physical gold to new highs. Last Friday, the physical gold climbed to a ground-breaking record of $4,269, indicating heightening demand that pushes investors to seek exposure to digital assets backed by precious metals.
Early this month, as of October 7, 2025, the market cap of gold-backed crypto tokens surpassed $3 billion for the first time, making a huge achievement for the tokenized gold market. The rise was catalysed by increasing global gold prices, which surged 58% this year, and rising investor appetite. The tokens leading the market are Tether’s XAUT and Paxos’ PAXG, which together control almost 89% of the market amid increasing institutional demand.
