Tether Gold reserves rise 9.5% as gold posts worst quarter in 13 years
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Tether Gold's (XAUt) physical gold reserves increased by 9.5% in the second quarter, indicating growing demand for tokenized gold exposure. This comes despite gold experiencing its worst quarterly performance in 13 years, falling 14.1%. Paolo Ardoino, CEO of Tether, stated that holders are purchasing XAUt both during price rises and periods of market weakness.
Why it matters
The rise in Tether Gold's physical reserves amid a significant drop in gold prices suggests investors are using tokenized gold to accumulate physical gold in a transparent, portable, and onchain manner. The product's accessibility and backing could be influencing increased market participation in tokenized commodities.
Key context
In the first quarter, Tether Gold's reserves increased by 36% to 707,747 fine troy ounces, valued at $3.3 billion. The total value of distributed tokenized commodities declined by 4.2% to $4.58 billion over the past 30 days, while holders increased by 6.5% to 253,000. Tether Gold also received Shariah certification in July to potentially broaden its appeal to Islamic financial institutions.
Key numbers and entities
Tether Gold (XAUt), Paolo Ardoino (CEO of Tether), Amanah Advisors (Shariah certification), 707,747 fine troy ounces (physical gold reserves at the end of Q1), $3.3 billion (value of gold reserves at Q1-end), $2.4 billion (total value of Tether Gold as of Monday), 253,000 (holders of tokenized commodities), $4.58 billion (value of distributed tokenized commodities in the past 30 days).
What remains unclear
The source does not flag open questions or limitations regarding the data or claims presented.