Tether Gold surpasses PAXG with gold reserves, XAU₮ market capitalization exceeds 2.2 billion.

Recently, gold has been continuously reaching historical highs, and the tokenized gold PAXG has also sparked controversy due to the depeg event. However, XAU₮ issued by Tether has quietly expanded its market share during this time, with a total market capitalization surpassing PAXG to reach 2.2 billion dollars. Tether CEO Paolo Ardoino stated: The demand for XAU₮ from both institutional investors and retail investors is increasing every day, and Bitcoin and gold are combating the dark financial world.

XAUT demand is increase daily. Both institutional and retail. Bitcoin and Gold are the against financial world descending into darkness.

— Paolo Ardoino (@paoloardoino) October 18, 2025

XAU₮ enters the gold reserve company

According to previous reports, Tether and the financial services company Antalpha Platform Holding, which closely collaborates with the cryptocurrency miner Bitmain, are raising at least $200 million for a digital asset finance firm DAT to reserve Tether's gold token XAU₮.

(Gold continues to reach new highs, is Tether preparing to enter the digital gold reserve company?)

DL Holdings Group Limited, listed in Hong Kong with the stock code 1709( on the Hong Kong Stock Exchange, also announced a comprehensive strategic partnership with Antalpha, with a collaboration valued at up to $200 million, covering tokenization of gold assets and Bitcoin mining infrastructure, establishing a dual-track strategy connecting traditional finance and digital finance.

DL Holdings plans to acquire or issue tokenized gold assets valued at up to 100 million USD in the form of Tether Gold )XAU₮(, enabling institutional investors and retail investors to easily invest in on-chain gold through familiar channels such as brokerage accounts and structured products. Antalpha will provide liquidity, custody, and lending services for XAU₮. Through its RWA Hub platform, physical vaults will be established in major global financial centers to simplify the gold redemption process.

Gold has risen 61% this year; does tokenization of gold have the opportunity to capture more market share?

Gold has been one of the best-performing assets in recent years, rising 61% so far this year, surpassing the returns of most stocks.

As Trump's trade war and uncontrolled budget deficits have shaken people's trust in other traditional safe-haven assets ), namely sovereign debt and currencies, especially the US dollar (, gold's safe-haven status has also been elevated. Investors are not only flocking to buy gold but are also rushing towards silver, other precious metals, and even Bitcoin, participating in the so-called “currency devaluation trade.”

Over the past 15 years, central banks around the world have been net buyers of gold, especially after Russia's invasion of Ukraine, which accelerated the pace of purchases significantly. With the U.S. and its allies freezing Russian central bank funds they hold, it highlights how foreign currency assets can be easily affected by sanctions.

However, since gold is a physical asset, holders must pay storage, security, and insurance costs. Tokenization of gold provides investors with another way to invest in gold, without having to pay ETF management fees or bear the storage costs and carrying risks of gold bars. Currently, the largest tokenized gold issuers are stablecoin issuers Paxos and Tether, with Tether taking the lead over Paxos through cooperation with gold reserve companies.

However, the stability of on-chain asset prices remains a concern for investors, especially with the recent depeg of PAXG triggering liquidation events. Tether Gold has gained considerable trust due to its relatively stable price during this time, and it is worth noting whether it can capture more market share in the future through the rise of gold.

)RWA is not equal to real assets! Looking at the asset on-chain risks from the depeg of PAXG(

This article discusses how Tether Gold has overtaken PAXG with gold reserves, and XAU₮ has a market capitalization of over 2.2 billion dollars, first appearing in Chain News ABMedia.