Tether Gold's market cap breaks $33 billion, with safe-haven demand driving strong inflows; Q1 gold reserves grew 36%.

Odaily Odaily reports that 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 the quarter shows its underlying gold reserves grew by 36% quarter-over-quarter, reaching approximately 707,747 ounces as of March 31st. This fully backs the circulating XAU₮ tokens on a 1:1 basis with gold, bringing the total market cap to approximately $3.303 billion. It is reported that all of XAUT's gold reserves are currently stored in Swiss vaults and comply with London Bullion Market Association (LBMA) standards. Each token corresponds to 1 ounce of physical gold and is subject to regular independent third-party audit verification.

Compared to the approximately 520,000 ounces in reserves at the end of 2025, the substantial increase in gold holdings this quarter reflects sustained capital inflows into digitized physical gold products. Amidst 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 its physical backing while benefiting from the transparency and transferability offered by blockchain.