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Tether Gold boosts bullion backing as gold hits worst quarter in 13 years

Tether said XAUt physical gold reserves rose 9.5% in Q2, while gold slid 14.1% in the quarter and XAUt holders climbed 6.5% to 253,000.

Reported · Written up by our desk · Altcoins

Tether Gold’s physical bullion reserves increased 9.5% in the second quarter, the company said, citing growing demand for tokenized gold exposure as part of its onchain commodity product. The update comes as gold logged its worst quarterly performance since 2013, falling 14.1% during the same period, according to TradingView data cited by Cointelegraph.

Cointelegraph reports that Tether CEO Paolo Ardoino said holders add to XAUt not only when gold rises, but also during market weakness to increase ownership of physical gold through a product described as fully backed and transparent. Tether also pointed to changes in the broader tokenized commodities market, where the distributed value fell 4.2% over the prior 30 days to $4.58 billion.

In addition, the number of XAUt holders rose 6.5% to 253,000, based on RWA.xyz data. Cointelegraph also notes that XAUt had physical gold reserves backing it at 707,747 fine troy ounces at quarter-end, valued at $3.3 billion, after a 36% increase in the first quarter.

The article adds that XAUt received Shariah certification from Amanah Advisors in July, which Tether said could expand access among Islamic financial institutions. Cointelegraph also states that XAUt is the largest distributed tokenized commodity product, with $2.4 billion in total value as of Monday.

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