Gold Hits Record High as Tether Reports Gold-Backed Token Is Growing Faster Than USDT

That means XAUT’s supply grew at five times the rate of Tether’s leading product in the fourth quarter, as investors sought exposure to the precious metal, which surged past the $5,000 per ounce mark for the first time ever this weekend.

XAUT faces competition from PAX Gold, a $2 billion product that was introduced by stablecoin issuer Paxos in September 2019. Although Tether’s alternative debuted a few months later, the stablecoin incumbent has also established a leadership position in tokenized gold.

BDO Italia’s report showed that Tether sold around 173,400 XAUT in the fourth quarter, more than three times the amount that it had sold over the previous six months. Today, 173,400 XAUT equates to $882 million worth of gold exposure.