As interest in tokenized gold accelerates, Tether Gold’s XAUT token is facing stiffer competition, even while its underlying supply continues to grow. New data shows that although XAUT remains the single largest tokenized gold product, its share of the overall market has slipped as the sector rapidly expands alongside soaring gold prices.
In January, XAUT’s market share fell to just over 50%, down from around 60% at the end of 2025, according to data. The shift reflects faster growth across the broader tokenized gold market, which has now reached a combined market capitalization of approximately $5.25 billion. XAUT accounts for about $2.6 billion of that total.
The decline in relative share comes despite fresh confirmation of Tether Gold’s reserves. A year-end attestation report issued by TG Commodities S.A. de C.V., the El Salvador-based issuer of XAUT, states that the company held 520,089.350 fine troy ounces of LBMA Good Delivery gold as of Dec. 31, 2025. This gold backs 520,089.300 XAUT tokens in circulation on a one-to-one basis.
The independent audit applied International Financial Reporting Standards (IFRS) recognition and measurement principles to verify both the existence and fair value of the gold held by the custodian. The auditors emphasized that the assessment reflects conditions strictly as of Dec. 31, 2025, and does not cover activity before or after that date.
At the time of the report, the gold reserves were valued at roughly $2.25 billion, based on a price of about $4,320 per troy ounce. Of the total minted XAUT supply, more than 409,200 tokens had been sold to market participants, while approximately 110,870 tokens remained available for sale.
Tether Gold’s expansion has been particularly notable in recent months. During the fourth quarter of 2025, Tether Gold Investments added around 27 metric tons of gold exposure. That volume exceeded gold purchases made by most individual central banks over the same period, underscoring the scale at which tokenized gold products are now operating.
Tether CEO Paolo Ardoino highlighted the broader implications of this growth in a statement accompanying the report. He said Tether Gold is now operating at a level comparable to sovereign gold holders, a position that brings added responsibility as investors seek alternatives amid weakening confidence in traditional monetary systems.
The changing market dynamics are unfolding against a backdrop of historic strength in gold prices. Spot gold climbed to record levels this week, surpassing $5,000 per troy ounce and briefly reaching an intraday high above $5,100. Rising prices have boosted the overall value of tokenized gold assets, even as competition among issuers intensifies.
