(Kitco News) - Investment demand has been a significant driving force for gold through the summer, and the market has seen broad appetite for all precious metal products, including digitalized assets.
On Tuesday, Tether Gold (XAU₮), the world’s leading tokenized gold product, announced that its market cap at the end of the third quarter of 2025 had surpassed $1.44 billion. Over the last week, as gold prices surged to record highs above $4,360 an ounce, the gold token’s market cap rose to nearly $2.1 billion.
“Gold has surged to record levels in 2025, fueled by persistent inflation, geopolitical fragmentation, and accelerating demand from both central banks and institutional investors,” the company said in its report. “As investors increasingly seek refuge from fiat depreciation and policy instability, Tether Gold continues to stand out as a reliable, liquid, and fully backed digital asset that bridges traditional value with the flexibility of blockchain.”
As of the end of the third quarter, XAU₮ held 375,572.297 troy ounces of gold in its reserves, with each token backed by at least one ounce of gold.
The company added that it had sold 235,820.936 tokens and currently has 139,751.311 tokens available for sale.
“Tether Gold proves that real-world assets can thrive on-chain without compromise,” said Paolo Ardoino, CEO of Tether. “With gold prices at all-time highs and institutional interest in tokenized assets growing, XAU₮ represents the future of asset ownership, where physical security meets digital freedom.”
Tether Gold’s performance comes as both retail investment in futures and gold-backed exchange-traded funds have seen record demand this past month.
According to data from the World Gold Council, 145.6 tonnes of gold have flowed into gold-backed ETFs so far this month, marking the fastest pace of inflows since March 2022. However, a sharp correction last week saw 12.5 tonnes of gold flow out of the paper market.
Meanwhile, on Oct. 17, the CME reported two record volume days this month in smaller contracts geared toward retail investors, including micro-gold futures—one-tenth the size of a full contract—mini-futures contracts that are half the size, and one-ounce futures.
