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Tether Gold reserves up 9.5% amid gold's worst quarter in 13 years

Created at 4 Aug · 12:36 PM1 source↑ Market-relevant
IN SHORT

Tether Gold's physical gold reserves increased by 9.5% in the second quarter, despite gold experiencing its worst quarterly performance since 2013. The company noted growing demand for tokenized gold exposure, with the number of holders rising.

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Key Numbers

9.5%Tether Gold reserves increase
14.1%Gold price decline in Q2
13 yearsWorst quarterly performance for gold since
6.5%Increase in Tether Gold holders
253,000Total Tether Gold holders
$2.4 billionTether Gold total value
4.2%Value of distributed tokenized commodities decrease in 30 days

Who's Involved

Tether Gold (XAUt)
tokenized commodity with increasing physical gold reserves
Paolo Ardoino
CEO of Tether, commenting on XAUt ownership
Amanah Advisors
certified Shariah compliance for XAUt

↳ Why This Matters

The increase in Tether Gold reserves during a period of falling gold prices suggests a growing investor appetite for tokenized commodities as an accessible and transparent way to hold gold, even amidst market downturns.

Key facts

  • Tether Gold's physical gold reserves grew 9.5% in Q2.
  • Gold prices saw their worst quarterly decline in 13 years, down 14.1%.
  • The number of XAUt holders increased by 6.5% to 253,000.
  • Tether Gold is the largest distributed tokenized commodity product, valued at $2.4 billion.

Tether Gold (XAUt) saw its physical gold reserves increase by 9.5% during the second quarter, a period marked by a significant 14.1% decline in gold prices, its worst quarterly performance in 13 years. Tether CEO Paolo Ardoino stated that holders are utilizing market weakness to increase their ownership of physical gold through the XAUt token. The number of XAUt holders grew by 6.5% to 253,000, indicating rising demand for on-chain gold exposure. The total value of distributed tokenized commodities decreased by 4.2% in the past 30 days. In July, XAUt received Shariah certification from Amanah Advisors, potentially broadening its appeal to Islamic financial institutions. Tether Gold remains the largest tokenized commodity product, valued at $2.4 billion.

Frequently asked questions

Tether Gold (XAUt) is a tokenized commodity that represents ownership of physical gold reserves held in secure vaults. It aims to provide on-chain accessibility and transparency for gold ownership.

The article attributes the 14.1% decline in gold prices to market conditions during the second quarter, marking its worst quarterly performance since 2013. Specific reasons for the decline are not detailed.

Shariah certification from Amanah Advisors means XAUt complies with Islamic financial principles, potentially increasing its accessibility and appeal to Islamic financial institutions and investors.

What Happens Next

01Further attestation reports will detail ongoing changes in XAUt's physical gold backing.
02The impact of Shariah certification on XAUt adoption by Islamic financial institutions will become clearer.

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Cadence

How It Developed

Tether Gold's physical gold reserves increased by 9.5% in the second quarter.
Gold experienced its worst quarterly performance since the second quarter of 2013, falling 14.1%.
The number of Tether Gold holders rose 6.5% to 253,000.
Tether Gold received Shariah certification in July.

Sources

T1
Tether Gold reserves rise 9.5% as gold posts worst quarter in 13 yearsXAUt added to its bullion backing during gold’s worst quarter since 2013, as tokenized commodity holder counts continued to rise.Cointelegraph

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