Gold’s digital counterpart XAUT Surges Amid Geopolitical Tensions and Federal Reserve’s Loosening Policy

Tether’s gold-backed token (XAUT) has hit a record-breaking market cap, now exceeding $1.4 billion, as gold prices soar to new peaks amid ongoing global economic instability Tether’s tokenized gold token XAUT rides gold rush to new market cap ATH [ 1 ]. This rise highlights the increasing interest in tokenized real-world assets (RWAs). XAUT is currently valued at about $3,746 per token, with daily trading volumes surpassing $77 million Tether’s tokenized gold token XAUT rides gold rush to new market cap ATH [ 1 ]. Compared to early 2025, this represents a 50–60% jump, and its market cap has doubled since mid-2024—largely fueled by a 41% year-over-year rise in gold’s price Tether’s tokenized gold token XAUT rides gold rush to new market cap ATH [ 1 ]. Increased gold purchases by central banks, especially from BRICS countries seeking to reduce reliance on the U.S. dollar, along with mounting geopolitical tensions, have further boosted gold’s appeal as a safe haven Tether’s tokenized gold token XAUT rides gold rush to new market cap ATH [ 1 ].

The broader tokenized gold sector has also grown, with total market capitalization reaching $2.57 billion, led by XAUT and Paxos’ PAXG Seoul Exchange Integrates Story Protocol for Tokenized Assets [ 5 ]. XAUT’s momentum is supported by its direct 1:1 link to physical gold, underpinned by 7.66 tons of reserves verified by BDO Italia Tether Gold (XAUt) Market Cap Soars as Gold Hits Record Highs in … [ 2 ]. Experts credit the token’s growing popularity to its effectiveness as a hedge against inflation and trade instability, with tokenized gold now accounting for $30 billion within the RWA industry Tether’s tokenized gold token XAUT rides gold rush to new market cap ATH [ 1 ].

has branded XAUT as a “natural ,” and economist Peter Schiff has suggested it could compete with Bitcoin as a long-term store of value Tether’s tokenized gold token XAUT rides gold rush to new market cap ATH [ 1 ].

Anticipated monetary policy shifts, such as potential rate cuts by the Federal Reserve, are expected to further boost XAUT’s performance. Upcoming Fed announcements and core PCE inflation figures, set for late August, could drive gold prices even higher. At present, traders see a 93% probability of a 25 basis point cut in October and an 81% chance in December Tether’s tokenized gold token XAUT rides gold rush to new market cap ATH [ 1 ]. Giovanni Staunovo, a strategist at UBS, believes gold could reach new highs this week if the Fed hints at more easing Tether’s tokenized gold token XAUT rides gold rush to new market cap ATH [ 1 ]. This outlook is supported by institutional buying, with central banks accumulating over 1,000 metric tons of gold in 2024—the third straight year of such purchases Tether Gold (XAUt) Market Cap Soars as Gold Hits Record Highs in … [ 2 ].

XAUT has also advanced technologically, gaining cross-chain support via

and integrating with Telegram’s TON network, which has improved both liquidity and accessibility Tokenized Gold Hits Record Market Cap of $2.57B - Cointribune [ 4 ]. These enhancements, together with more robust security audits, enable XAUT to rival traditional gold ETFs while meeting regulatory demands Tokenized Gold Hits Record Market Cap of $2.57B - Cointribune [ 4 ]. Tether’s purchase of a 31.9% share in Elemental Altus Royalties has further reinforced its reserves of physical gold, though ongoing geopolitical issues and commodity price swings still pose risks Tokenized Gold Hits Record Market Cap of $2.57B - Cointribune [ 4 ].

Looking forward, as the RWA market continues to expand, XAUT’s market cap is likely to grow, especially with the Seoul Exchange’s collaboration with Story Protocol underscoring the use of blockchain for tokenizing cultural assets. Nevertheless, regulatory developments and rivalry from conventional ETFs will play crucial roles in determining long-term adoption. With gold currently near $3,470 and the tokenized gold sector valued above $2.5 billion, XAUT’s progress highlights the merging of traditional commodities and digital finance Seoul Exchange Integrates Story Protocol for Tokenized Assets [ 5 ].