TL;DR

Gold’s rally extends to digital markets, with Tether Gold now exceeding $2.2 billion in valuation.
Tether’s XAUt token represents over half of the global gold-backed stablecoin market.
Central banks are reducing dollar reserves and increasing gold purchases as a hedge.

Gold continues to gain ground as investors search for protection during a period of rising monetary pressure and political strain. The rally now extends beyond physical bullion and reaches digital markets, where tokenized gold records steady growth. Data released at the start of the week places Tether Gold (XAUt) at the center of that shift, reflecting a broader retreat from the US dollar.

Tether confirmed that XAUt now represents more than half of the global gold-backed stablecoin market, with a total valuation above $2.2 billion. The company reported 520,089 tokens in circulation by the end of the fourth quarter.

Paolo Ardoino, Tether’s chief executive, stated that the vehicle holding the gold behind XAUt now operates at a scale comparable to some sovereign holdings. His comment underlined how digital formats no longer sit at the margins of commodity markets. Instead, tokenized instruments increasingly mirror trends visible in traditional finance.

The timing aligns with a historic move in commodity pricing. Comex gold crossed $5,000 per troy ounce, marking a year-to-date rise near 17%. Physical demand rises alongside digital adoption, suggesting parallel behavior across investor profiles rather than a speculative split.

Central banks reduce dollar exposure as gold demand rises

Official sector activity reinforces the pattern. Central banks continue to trim reliance on dollar-denominated reserves while rebuilding gold positions. According to figures from the World Gold Council, net purchases reached 220 tonnes during the third quarter of 2025. Reserve managers cite currency risk, trade friction, and geopolitical strain as primary reasons for renewed accumulation.

Since early 2025, the US Dollar Index (DXY) trends lower. The index fell 9.4% during 2025, posting the weakest annual performance since 2017. The slide continued during the current month, pushing the index to the lowest level recorded since September. The trend coincides with growing fiscal uncertainty and trade pressure under the current administration.

Digital gold products benefit from accessibility

Tokenized formats allow fractional ownership, rapid transfer, and integration with crypto platforms, while retaining physical backing. For institutional and private holders alike, such tools offer exposure without logistics tied to storage or transport.

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Filed under: News - @ January 26, 2026 9:29 pm