Tether Gold Reserves Grow 9.5% Even As Gold Prices Suffer Worst Quarter In Over A Decade

Physical gold reserves backing Tether Gold rose 9.5% in the second quarter, even as gold prices posted their weakest quarterly performance in thirteen years. The company said the growth reflects rising demand for tokenized gold exposure.

Gold Prices Slide While Reserves Climb

Gold dropped 14.1% over the quarter, marking its worst quarterly showing since 2013, according to market data. Despite the decline, Tether’s chief executive said holders of the token aren’t just buying during price rallies. Instead, he said, many are using periods of market weakness to increase their physical gold ownership through a product that offers full backing, transparency, and onchain accessibility.

Tokenized Commodity Market Overview

The broader tokenized commodities market saw its total distributed value dip 4.2% to $4.58 billion over the past month, even as the number of holders climbed 6.5% to 253,000, according to industry data. Tether Gold’s reserves had already grown sharply in the first quarter, rising 36% to just over 707,000 fine troy ounces, valued at $3.3 billion at the time.

Recent Certification Expands Reach

The token also received Shariah certification in July, a move that could open access to Islamic financial institutions seeking gold exposure through compliant products. Tether Gold remains the largest distributed tokenized commodity product on the market, with a total value of $2.4 billion as of Monday.