Why Tether Gold’s Demand Looks Set to Stay Elevated in 2026

Core Insights - Tokenized gold, particularly Tether's XAUT, is emerging as a defensive asset within digital portfolios, showing signs of durability into 2026 [2] - Large holders, or "whales," are increasingly accumulating tokenized gold, indicating a shift from opportunistic retail flows to institutional-scale positioning [4][6] Whale Accumulation - Recent blockchain activity reveals significant purchases by high-net-worth wallets, with one whale spending $8.49 million to acquire 1,948 XAUT at an average price of $4,357 [3] - Another group of six linked wallets purchased 3,102 XAUT for approximately $13.7 million at an average price of $4,422, further emphasizing the trend of whale accumulation [4] Market Context - The shift towards tokenized gold is occurring amid rising geopolitical tensions, which typically increase demand for safe-haven assets [9] - The appeal of XAUT lies in its structure, where each token represents ownership of physical gold while being fully transferable on-chain, combining real-world backing with crypto utility [9] Investment Trends - Some wallets that previously invested heavily in Bitcoin are now pivoting towards gold-backed tokens, indicating a strategic shift in asset allocation [5] - Current holders of XAUT are experiencing unrealized profits, reinforcing gold's role as a hedge against market volatility [6]