Ethereum network whales have been steadily building their inventories of Tether Gold (XAUT) amid significant new token issuance by Tether and a widening performance gap between gold and major cryptocurrencies. The number of Ethereum wallets with positive XAUT balances climbed to 35,609 by March 11, compared to 33,390 at the start of the month, reflecting growing demand for tokenized gold among crypto market participants.
Top Holders Concentrate XAUT As Institutional Demand Grows
Several large entities moved to concentrate their positions in XAUT, with blockchain data identifying the second-largest holding as controlled by a wallet linked to Abraxas Capital. This international investment firm is known for alternative asset strategies and institutional trading activity, with a history of engagement in both traditional finance and digital assets. Recent transactions showed Abraxas Capital controlled close to 2,700 tokens — a position valued at nearly $265 million. Tokens were consolidated into a primary reserve wallet, with the company limiting outgoing transfers during this period.
Other major holders displayed mixed strategies. Antalpha, another institutional player active in digital asset markets, trimmed part of its XAUT stash after a period of steady accumulation but continued to hold most of its reserves. The decentralized finance protocol RhinoFi registered the largest outflow among identified entities, though its XAUT-related on-chain activity appeared minimal during this window.
Tether Expands Supply As Gold’s Strength Outshines Bitcoin
Tether, which operates the XAUT token and manages physical gold reserves backing each unit, minted additional tokens in early 2026. The total outstanding supply reached 712,247, pushing market capitalization to nearly $3.57 billion. This marks one of the highest figures for XAUT to date as the demand for on-chain gold exposure remains robust.
Gold’s resilience in the global markets stands in contrast to the recent dip in Bitcoin’s price, which saw a 16.78% year-on-year decline. Over the same period, gold values increased by more than 78%, prompting some investors to seek exposure to precious metals through tokenized options. The XAUT product offers blockchain-based spot access to physical gold, attracting both traditional investors and crypto-native participants.
Tether disclosed $2.31 million in net profits from the XAUT line in the final three months of 2025. In addition, Tether ranks among the leading holders of its own token, maintaining close oversight over the gold reserves tied to XAUT issuance.
XAUT’s market activity extended to trading platforms, where daily volumes nearly doubled those recorded for rival product Paxos Gold (PAXG). Bitget processed the highest share of XAUT transactions, while some large holders utilized Bitfinex. Liquidity remained stable despite the absence of XAUT listings on exchanges such as Binance.
Adoption beyond secondary trading sees limited traction among corporates, with US-based Aurelion standing out as the only company currently holding XAUT in its treasury as of March 2026. In decentralized finance, certain protocols accept XAUT as collateral, broadening its potential use cases.
