Tether Gold (XAU₮), a digital token backed by physical gold, has seen its market capitalization climb past $4 billion. This surge solidifies its dominance, with the token now accounting for more than half of the entire gold-backed stablecoin market.

The growth of XAU₮ reflects a broader trend in the digital asset space: the tokenization of real-world assets (RWAs). Investors are increasingly drawn to the stability of traditional assets like gold, combined with the efficiency, liquidity, and transferability offered by blockchain technology. The entire tokenized gold market is now valued at over $4 billion, indicating a strong appetite for such hybrid financial products.

While several players exist, the market is largely consolidated between Tether Gold and its main competitor, Paxos Gold (PAXG). Together, these two assets command the vast majority of the market share.

This milestone signals Tether's successful strategy to diversify its offerings beyond its primary USDT stablecoin. It underscores the viability of tokenized commodities and positions Tether as a key player in the expanding RWA sector, bridging traditional finance and the digital asset economy.

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https://Tether.io/news/tether-gold-accounts-for-more-than-half-the-entire-gold-backed-stablecoin-market-as-xaut-surpasses-4-billion-in-value/