Tether’s gold-backed token is quietly reshaping how bullion moves across borders.
- XAUt moved 94 tonnes in six months with just 0.0016% in fees, showcasing extreme cost efficiency.
- Tether holds about 148 tonnes of gold, backing a $2.66 billion market cap and over 60% sector share.
- Tokenized gold now exceeds $6 billion in value, offering 24/7 trading and lower costs than traditional ETFs.
- Institutional adoption is accelerating, with new dividend options, OTC desks and cross-chain expansion driving growth.
According to Tether CEO Paolo Ardoino, 94 tonnes of Tether Gold (XAUt) were transferred on-chain over the past six months, with total transaction costs amounting to just 0.0016% of the value moved.
Ardoino contrasted that figure with the traditional system of physically transporting gold between central banks – a process that typically involves multimillion-dollar expenses tied to logistics, insurance and security. The comparison highlights how tokenization is positioning itself as a faster and dramatically cheaper settlement layer for bullion.
As of February 22, 2026, XAUt holds more than 60% of the tokenized gold market. The token trades near $5,100 per ounce, after gold briefly surged to an all-time high of $5,597 in late January. With a market capitalization of roughly $2.66 billion and daily trading volumes ranging between $172 million and $247 million, XAUt remains the most actively traded digital gold asset.
Reserve Growth and Institutional Push
Tether’s physical gold reserves reached approximately 148 tonnes by late January, valued at around $23 billion. That scale places the company among the top 30 gold holders globally, underscoring how quickly tokenized bullion has grown beyond a niche product.
Corporate adoption is also accelerating. On February 17, Elemental Royalty Corp. became the first publicly listed gold company to offer shareholders the option to receive dividends in XAUt – a milestone that bridges traditional mining finance with blockchain-based settlement.
Earlier in the month, Tether announced a $150 million investment for a 12% stake in Gold.com, aiming to integrate XAUt directly into physical gold marketplaces. Meanwhile, the launch of XAUt0, an omnichain version built using LayerZero’s OFT standard and initially deployed on The Open Network, expands cross-chain liquidity and DeFi access.
Reports indicate Tether continues accumulating between one and two tonnes of gold per week to back new issuance.
How XAUt Compares to Rivals and ETFs
Tokenized gold now represents more than $6 billion in total market value, with XAUt and Pax Gold accounting for roughly 90% of the sector. Traditional vehicles such as SPDR Gold Shares remain significantly larger in absolute size, but digital tokens offer structural differences that appeal to crypto-native investors.
Unlike gold ETFs, which trade only during stock market hours, XAUt and PAXG operate 24/7. XAUt’s integration with lower-cost networks such as Tron gives it a fee advantage, particularly for high-frequency transfers. PAXG, issued under a New York trust structure and audited monthly, continues to attract compliance-focused investors seeking stronger regulatory oversight.
Both tokens allow physical redemption starting at 430 tokens – equivalent to a standard 400-ounce gold bar plus fees. XAUt’s bullion is stored in Switzerland, while PAXG’s reserves are held in London vaults. Tether also provides transparency tools enabling holders to verify specific bar serial numbers and purity details.
Institutional participation is increasing. On February 17, Wintermute launched an OTC desk for both XAUt and PAXG, forecasting the tokenized gold market could reach $15 billion by the end of 2026. Exchanges have also stepped in to boost activity, with zero-fee trading promotions earlier this year aimed at expanding retail adoption.
Digital Gold’s Efficiency Narrative
The movement of 94 tonnes in half a year with negligible on-chain costs reinforces a broader narrative: tokenized gold is not just tracking spot prices – it is competing on infrastructure efficiency.
As bullion prices remain elevated and geopolitical uncertainty persists, blockchain-based settlement for hard assets is gaining momentum. If current growth in reserves and trading volumes continues, tokenized gold may evolve from a niche crypto product into a parallel settlement rail for global bullion markets.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Source: https://coindoo.com/tether-gold-moves-94-tonnes-with-near-zero-fees/