Tether Tokenized Gold Reserves Exceeded 11.6 Tons in Q3 Amid Yellow Metal's Rally

Core Insights - Tether holds over 11.6 tons of gold bars to back its tokenized gold offering, Tether Gold (XAUT), in response to increasing investor demand for gold [1] - As of September 30, XAUT was backed by more than 375,000 ounces of physical gold, with reserves stored in Switzerland [1] - The market capitalization of XAUT surged to over $1.4 billion in Q3, driven by rising gold prices amid inflation concerns and geopolitical instability, and reached $2.1 billion in October as gold prices hit $4,500 [2] Group 1 - Tether Gold (XAUT) is issued under El Salvador's digital asset framework and is backed 1:1 by a fine troy ounce of gold [1] - The growth in XAUT's market cap was primarily fueled by increased demand from retail investors in emerging markets, as stated by Tether's CEO [2] - Tokenized gold provides a blockchain-based representation of physical gold, making it accessible to investors without the complexities of traditional custody or logistics [3] Group 2 - The rising demand for gold is attributed to inflation concerns, geopolitical instability, and increased purchases from central banks [2] - Tokenized gold allows investors who lack access to traditional financial products like ETFs to invest in gold [3]