In our previous article on Tether Gold (XAUT) from April 2, 2025, we explained why this token is so special: each XAUT represents one troy ounce of physical gold held by Tether, allowing you to combine gold exposure with crypto tradability. That core hasn't changed, but the context has.
Sentiment in the crypto market has been downright weak for months, especially in altcoins, while gold is going through an exceptionally strong period. In that combination, XAUT stands out as remarkably positive, precisely because it does not participate in the typical crypto volatility but does benefit from the flight to safety.
The April 2 article can be found here: Tether Gold (XAUT): Digital gold standard with stable fundamentals.
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The current state of affairs
Whereas in 2025 there was mostly talk of uncertainty and a rising gold price, in early 2026 we see a real acceleration. Gold is trading around $5,520 per ounce and recently broke record levels again, driven by geopolitical tensions, debt concerns and continued demand for safe havens.
Because XAUT follows the gold price, the token moves almost one-on-one with it. You can see this in the market data as well: XAUT trades around $5,533, with a market capitalization around $2.6 billion and very high trading volume on busy days.
The striking part is that this is happening while broad crypto sentiment has been disappointing for some time. Many coins have been losing ground for months and several reports even speak of a sustained altcoin bear market since the end of 2024. In such a climate, investors are more likely to look for something that is not dependent on hype, narrative rotation or risk appetite. XAUT fits that need exactly because its value is primarily determined by gold and not the vagaries of the crypto market.
Why XAUT looks extra attractive now
The main reason is simple: gold does what it historically often does in troubled times, it attracts capital. The World Gold Council reported that global gold demand reached a record in 2025, with investment demand in particular rising sharply. That's exactly the type of demand that also carries over to digital versions of gold, as more and more investors want to be able to move, store and trade gold without physical logistics.
On top of that, Tether itself is actively communicating about the growth of the gold-backed stablecoin market and XAUT's dominance in it. Marketing language aside, this does confirm the bigger picture: gold on blockchain is growing from niche to serious category, just as gold as a safe haven is taking center stage again.
Transparency and coverage remain core
XAUT is all about confidence in coverage. To this end, Tether publishes separate reports in which the starting point is always the same: there is at least one fine troy ounce of gold in reserve per token issued. For investors, that's the foundation, because without that coverage, XAUT is simply a token with promise. So anyone using XAUT as a digital gold position would do well to regularly check the reserve reports and how Tether reports on it.
Note that different data providers sometimes report a different circulating supply, for example around 474 thousand tokens or around 520 thousand tokens. That difference is usually due to definitions and update times per platform, but it is a reminder to always check multiple sources if you want to compare exact numbers.
XAUT and regulation in Europe
An additional factor in 2026 is regulation. In the EU, MiCA is the new unified framework for crypto, with specific rules for asset referenced tokens, among others, a category that a gold-backed token often falls under in practice. MiCA is all about transparency, disclosures, licensing and oversight, and that may affect where and how certain tokens are offered in Europe.
That doesn't mean XAUT is suddenly unusable, but it can affect availability on certain platforms, especially among parties that want to operate more strictly within MiCA frameworks. For European users, it is therefore wise to look not only at price and coverage, but also at the platform where you trade and the local availability of XAUT.
Price and outlook
Those who buy XAUT are essentially buying gold with a crypto jacket. So the catalyst for further rise remains the same: a higher gold price. The recent gold rally has been primarily driven by safe haven demand and macro uncertainty. If that climate persists, XAUT will logically continue to ride along.
What especially sets XAUT apart in the current climate is that it can have a positive story without crypto as a whole having to turn positive. At a time when many projects depend on recovery in risk sentiment, XAUT shows that there is also room within crypto for defensive positions that actually benefit from uncertainty. That does not make it a substitute for growth-oriented crypto investments, but it is a tool that can play a different role in a digital portfolio: stability, diversification and protection.
The chart below shows XAUT's price performance over the past year:
Conclusion
The crypto market has been in heavy weather for months and many altcoins are struggling to recover structurally. That is precisely why Tether Gold (XAUT) stands out: not because it is suddenly a speculative winner, but because it has a clear, understandable value link to an asset that is currently doing exceptionally well. With gold around record levels and investment demand arguably remaining strong, XAUT remains one of the most logical ways to combine gold exposure with the benefits of blockchain.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.