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Story: Tether Gold Reserves Jump 9.5% as 253,000 Holders Buy the Gold Dip

By Dan Saada

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Holders Rising Even as Commodity Values Drop. The broader tokenized commodity market didn't have a clean quarter either. Overall value fell 4.

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Shariah Certification Opens New Markets. In July, XAUt received Shariah certification from Amanah Advisors. That's not a small thing.

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What the Reserve Growth Actually Means. Tether Gold's model is straightforward: every XAUt token is backed by one troy ounce of physical…

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Tether Gold grew its physical gold reserves by 9.5% in the second quarter. That happened while gold itself was having one of its worst stretches in over a decade.

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Gold dropped 14.1% during the quarter, per TradingView data. That's the steepest quarterly fall since 2013. Pretty brutal by any measure.

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The broader tokenized commodity market didn't have a clean quarter either. Overall value fell 4.2% to $4.58 billion over the past month, according to RWA.xyz data.

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Earlier in the year, XAUt's physical gold reserves had already surged 36% to 707,747 fine troy ounces, totaling $3.3 billion at the end of the first quarter.

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Regions with large Muslim populations represent a significant pool of institutional and retail capital that's been largely sitting out the tokenized asset space.

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More context: Loracle Bets $23 Million on Gold as Deutsche Bank Eyes $4,700 Target

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And the timing matters. Getting certified during a quarter when gold prices dropped hard probably helped Ardoino's argument that investors should be buying, not selling.

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The 9.5% reserve jump in Q2 means Tether was adding physical gold to its vaults while the spot price was falling.

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Tokenized commodities as a category are still pretty small relative to the broader digital asset market.

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Related: Nigerias Crypto Tax Crackdown Hits Exchanges and P2P Platforms Hard

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The gap between falling market value and rising holder counts in the RWA.xyz data is worth watching.

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Tether Gold's reserves stood at 707,747 fine troy ounces at the end of Q1, valued then at $3.3 billion. The Q2 reserve increase of 9.5% adds to that base.

The Currency Analytics

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