Tether Gold's market capitalization has exceeded $3.3 billion, with strong inflows driven by safe-haven demand. Q1 gold reserves grew by 36%.

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

Data for this quarter shows that its underlying gold reserves grew by 36% quarter-over-quarter, reaching a total reserve of approximately 707,747 ounces as of March 31. This corresponds to a 1:1 gold backing for the circulating XAU₮ tokens, with a total market value of approximately $3.303 billion. It is reported that all of XAUT's gold reserves are currently stored in Swiss vaults and comply with the London Bullion Market Association (LBMA) standards. Each token represents 1 ounce of physical gold and undergoes regular independent third-party audits for verification.

Compared to the reserve of approximately 520,000 ounces at the end of 2025, this quarter saw a substantial increase in gold holdings, reflecting a sustained inflow of capital into digital products backed by 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 its physical backing while offering the transparency and transferability brought by blockchain technology.