XAUt's Gold Backing Surges 9.5% During Precious Metal's Steepest Decline in Over a Decade
During the second quarter, XAUt's underlying physical gold reserves grew by 9.5% even as the precious metal tumbled 14.1%, marking its steepest quarterly decline since 2013.
Tether Gold (XAUt) saw its physical gold backing expand by 9.5% throughout the second quarter, a development that Tether attributes to increasing appetite for gold exposure through tokenized assets.
During this same period, gold experienced a 14.1% decline, representing its most significant quarterly drop since the second quarter of 2013, according to data provided by TradingView.
Holders of Tether Gold are not only buying XAUt when the price of gold is rising. They are using periods of market weakness to increase their ownership of physical gold through a product that is fully backed, transparent, portable and accessible onchain.
Paolo Ardoino, CEO of Tether
Over the last 30 days, the total value of distributed tokenized commodities declined by 4.2% to reach $4.58 billion, even as holder counts climbed 6.5% to 253,000, based on data from RWA.xyz.
Throughout the first quarter, XAUt's underlying physical gold reserves expanded by 36%, reaching 707,747 fine troy ounces with a valuation of $3.3 billion at the end of that quarter. In July, XAUt obtained Shariah certification through Amanah Advisors, a strategic development that has the potential to broaden the token's accessibility within Islamic financial institutions.
As of Monday, Tether Gold holds the position of the largest distributed tokenized commodity product, commanding a total value of $2.4 billion.