Tether Setting New Standard With New Gold Stablecoin, XAUt ?

Top stablecoin issuer Tether has officially released the first attestation for its gold-backed stablecoin, XAUt.

This news, revealed in a recent X post, shows that more than 7.7 tons of physical gold backs the token.

This marks a major step for XAUt as it grows in a changing global economy. With more people looking for stable assets, XAUt is gaining attention, especially in emerging markets.

This new attestation confirms the Company’s commitment to transparency and strong product backing.

The Tether Gold Stablecoin Outlook

Tether’s XAUt is setting a new standard for tokenized gold. Each XAUt token is backed 1:1 by one troy ounce of real gold, stored in secure vaults in Switzerland.

This differs from competitors relying on “paper gold” without full physical backing.

According to the X post, Tether gold had a market value of $770 million at the end of the first quarter, making it the largest gold-backed token by market cap.

Even though it is not as widely used as Tether’s USDT, XAUt has gained in value.

This is partly because the market price of gold has increased by about 8% in the last month.

XAUt recently reached an all-time high (ATH) price of $3,423. XAUt is seeing increased demand in emerging markets, where people seek safe and reliable investments.

Paolo Ardoino, CEO of Tether, recently announced that the company plans to expand XAUt’s reach by listing it on more crypto exchanges soon. This move will further boost the gold-backed stablecoin’s accessibility and liquidity.

MiCA Regulation: What Has Changed for USDT?

The European Markets in Crypto-Assets (MiCA) regulation sought to guarantee greater transparency and security in the crypto market.

Tether is likely working to follow these rules with new products, a change from its earlier approach.

In December, the company ceased operations in Euro Tether (EURT) following the regulatory challenges it encountered in Europe.

The new attestation for XAUt shows that the Company is now serious about meeting MiCA standards.

As shared in a blog post, Tether said that following MiCA rules will help build more trust in the European crypto market for USDT and Tether Gold.

Tether’s USDT, which has about $148 billion in circulation, is still the top stablecoin in the market.

By improving its compliance, it hopes to stay strong as regulations grow.

Portfolio Diversification Campaign: BTC, Juventus, BeWater

Beyond Tether gold and USDT, the stablecoin issuer is also working to diversify its investments. It continues to hold Bitcoin (BTC) as part of its reserve strategy.

Bitcoin’s price rose by over 14% last month, solidifying the value of the combined BTC held by Tether, now pegged at over 100,000 units.

Beyond cryptocurrencies, the Company is expanding into sports and the media among other industries.

The company recently increased its stake in Juventus Football Club to more than 10.12% of its share capital. This has given the firm 6.18% of the voting rights.

Juventus is one of the most famous football clubs in Italy and worldwide. This investment strengthens Tether’s brand beyond just fintech.

The company also invested $10.8 million in BeWater, an independent media company supporting new decentralized finance (DeFi) innovations.

This investment highlights Tether’s growing affinity for contributing to free-speech media.

By investing in Bitcoin, sports, and DeFi, Tether is building a stronger and more flexible future for its business.