Tether's tokenized gold token XAUT markes new all-time high on the back of a gold rush

XAUT, Tether’s tokenized version of gold, breached new territory in terms of market capitalization, reaching a new all-time high earlier today. The boost came as gold traded at an all-time high, amid global economic uncertainty, which has boosted demand for safe-haven assets.

XAUT is currently trading at approximately $3,746, with a 24-hour trading volume of above $77 million and a circulating supply of above 375,000 tokens, pushing the market cap to over $1.4 billion, a fresh ATH. This shows a roughly 50–60% increase from early 2025 levels and doubles the cap from mid-2024.

Gold and tokenized gold benefit from geopolitical tensions 

Gold prices are up 41% year-over-year, thanks largely in part to geopolitical tensions, central banks from countries like China and India buying, and fiat currency volatility. 

As XAUT’s peg has continued to hold steady, it has had a rippling effect on its cap growth through increased issuance and demand.

It has sustained the constant surges in its market cap amid investor fears of new international trade tariffs, further validating gold’s role as a hedge in volatile markets. 

Other factors influencing a surge now for XAUT outside the bullish price action of gold itself include the growing tokenized RWA sector and a rising demand for inflation-resistant stores of value. 

The sector is currently worth about $30 billion, and Tether has been calling it “natural bitcoin” while some analysts predict it will come to rival Bitcoin itself as a store of value. 

Economist Peter Schiff is one of them and has even proclaimed on X that it would “eat Bitcoin’s lunch.”

Tokenized gold will eat Bitcoin's lunch. Also, who needs a U.S. dollar "stablecoin" when you can have a coin that represents ownership of real gold. https://t.co/ykrvyk3FV7

— Peter Schiff (@PeterSchiff) August 14, 2025

According to him, “who needs a US dollar stablecoin when you can have a coin that represents ownership of real gold.”

More moves from gold expected this week 

Gold has witnessed a significant rally over the past two years, bolstered by persistent central bank accumulation, particularly from BRICS nations seeking to diversify away from U.S. dollar dependency, and global inflation.

While gold has already hit a new all-time high, analysts have predicted there is more to come in the coming days. Jerome Powell, the Fed Chair, is scheduled to speak on Tuesday, alongside other officials, with core PCE inflation data due to drop on Friday.

Both are factors that could push the yellow metal even higher as the general consensus leans towards more rate cuts.

In fact, reports claim traders have been placing bigger bets that the Fed is now on a bullish path, especially since it cut interest rates by 25 basis points last Wednesday.

Two more cuts are expected this year, with the one in October having a 93% chance, and another in December with an 81% chance, according to the CME FedWatch Tool.

Giovanni Staunovo, a strategist at UBS, said, “I would expect gold to reach new record highs this week with Fed officials likely to indicate further rate cuts, but also being data dependent on the pace and magnitude of cuts.” 

Staunovo is convinced the Fed is closely monitoring the data, and has set a clear tone: they’re leaning toward easing.

If you're reading this, you’re already ahead. Stay there with our newsletter.