Tether Gold market cap breaks $33 billion, safe-haven demand drives strong inflows Q1 gold reserves up 36%,

Odaily Planet Daily News Tether Gold (XAUT) continued to expand in the first quarter of 2026, with its total market capitalization surpassing $3.3 billion. Driven by record-high gold prices and heightened macroeconomic uncertainty, investor demand for safe-haven assets has risen significantly.

Data for this quarter shows that its underlying gold reserves increased by 36% quarter-over-quarter, reaching a total reserve of approximately 707,747 ounces as of March 31. This corresponds to a fully 1:1 gold backing for the XAU₮ tokens in circulation, with a total market cap of approximately $3.303 billion. All of XAUT's gold reserves are currently stored in Swiss vaults, compliant with the London Bullion Market Association (LBMA) standards. Each token is backed by 1 ounce of physical gold and undergoes independent third-party periodic audit verification.

Compared to reserves of approximately 520,000 ounces at the end of 2025, gold holdings increased significantly this quarter, reflecting sustained capital inflows into digital products of physical gold. Against a backdrop of high inflation and geopolitical risks, investors are increasingly seeking on-chain programmable and highly liquid exposure to gold.

Tether CEO Paolo Ardoino stated that XAU₮ is proving that tokenized commodities can meet institutional-grade reserve standards, allowing gold to maintain physical backing while possessing the transparency and transferability brought by blockchain technology.