Tether Gold and Pax Gold both climbed nearly 6% in 24 hours, tracking gold’s move above $5,500 per ounce for the first time.
- Tether Gold accounts for more than half of the gold-backed stablecoin market by capitalization.
- Tether CEO Paolo Ardoino told Bloomberg the company has been purchasing one to two tons of gold per week to back its USDT reserves.
- Other tokenized gold assets, including Kinesis Gold and Matrixdock Gold, also posted strong gains and fresh highs.
Tokenized gold tracked the precious metal’s rally on Wednesday, with digital assets such as Tether Gold (XAUT) and Pax Gold (PAXG) notching record highs alongside spot gold prices following the Federal Reserve’s decision not to cut interest rates.
Tether Gold climbed 5.8% to above $5,543, retreating slightly from a record high of $5,554 and Pax Gold rose 5.9% to $5,561, CoinGecko data showed. On Stocktwits, retail sentiment around XAUT trended in ‘bullish’ territory over the past day, while retail sentiment around PAXG rose to ‘extremely bullish’ from the ‘bullish’ zone. Both saw chatter at ‘extremely high’ levels.
According to DefiLlama data, Pax Gold clocked record inflows of $248 million in January alongside the surge in bullion prices. Spot gold broke above $5,500 per ounce for the first time on Wednesday. The SPDR Gold Shares ETF (GLD) was among the most discussed tickers on Stocktwits, rising 3.88% during regular trading before adding another 2.62% in after-hours trade.
Tether’s Building Its Gold Reserves
In an interview with Bloomberg, Tether CEO Paolo Ardoino said the company is on track to become one of the largest gold central banks in the world. He stated that the stablecoin giant behind USDT has been buying one or two tons of gold per week, and plans to maintain this pace for "definitely the next few months.”
“Maybe we are going to reduce, we don't know yet. We are going to assess on a quarterly basis our demand for gold,” he said, adding that the firm may be looking into trading gold as well.
According to the report, Tether currently has nearly 140 tons of gold in its reserves. This makes it the largest holder of the precious metal outside of central banks. Its gold token, Tether Gold, holds over 50% share of the gold stablecoin market with a $2.62 billion market capitalization.
Earlier this week on Tuesday, Tether officially announced the launch of USAT — its U.S. dollar-pegged stablecoin that is available to U.S. customers, unlike USDT.
Smaller Gold Tokens Join the Rally
Other tokenized gold coins like Kinesis Gold (KAU) and Matrixdock Gold (XAUM) also notched higher highs on Wednesday night. KAU’s price rose 5.8% to over $178 in the last 24 hours, while XAUM’s price rose 5.6% to $5,545. Both saw retail sentiment trending in ‘extremely bullish’ territory over the past day on Stocktwits.
Read also: Bitcoin, Ethereum Drop While Gold Extends Record Run Following Fed Decision
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