Tether‘s gold-backed digital asset, Tether Gold (XAU₮), completed an independent audit by leading accounting firm KPMG, which confirmed that the token was fully backed by physical gold as of December 31, 2025. KPMG independently reviewed TG Commodities, the entity issuing XAU₮, and verified a direct correlation between the physical gold stored and the number of tokens in circulation.
Clean audit confirms full gold backing for XAU₮
According to the audit, TG Commodities held 520,089.350 fine troy ounces of physical gold in its vaults, valued at approximately $2.246 billion at the end of 2025. During the same period, there were 520,089.300 XAU₮ tokens circulating. This one-to-one parity indicates that each token is backed by one ounce of physical gold, stored securely on behalf of investors.
Tether Gold (XAU₮) is now the second stablecoin project from Tether to undergo a comprehensive audit by a Big Four accounting firm, joining Tether’s flagship USDT stablecoin in transparency efforts.
KPMG’s review went beyond an analysis of financial documentation. Auditors physically inspected every gold bar that backs XAU₮, conducting on-site verification at the storage facilities. This approach further strengthened the credibility of Tether Gold’s backing process and the asset’s transparency.
KPMG issued an unqualified opinion on the financial statements of TG Commodities for 2025, meaning auditors found no material misstatements or reservations in the company’s reporting. Such a verdict, often called a “clean opinion,” enhances investor confidence in the reserve backing of tokenized assets.
Paolo Ardoino, CEO of Tether, highlighted the rigor of the audit and stated that KPMG “counted every single bar as part of its Tether Gold audit,” confirming that the physically backed token’s reserves matched the issued supply.
Ardoino also expressed optimism for XAU₮, noting that the digital asset is positioned to compete directly with traditional gold exchange-traded funds (ETFs) by offering users blockchain-based access to physical gold.
Tether Gold reserves grow in 2026
After the audit period, Tether continued to expand its reserves. By September 30, 2026, the reported value of gold backing XAU₮ had increased to around $3.44 billion. This marks an approximate 59% growth in reserves compared with the end of 2025, signaling rising demand for tokenized gold products.
| Reporting Date | Gold Holdings | Reported Value |
|---|---|---|
| December 31, 2025 | 520,089.350 oz | $2.246 billion |
| September 30, 2026 | Not specified | $3.44 billion |
With XAU₮, investors can gain exposure to physical gold via blockchain networks while tokens signify legal ownership of one troy ounce of gold stored in Switzerland-based vaults. This model offers an alternative to purchasing and storing physical bullion, allowing for easier transfer and digital trading.
The latest KPMG audit offers an additional layer of transparency for digital gold investors who require confirmation that tokenized assets are backed by the stated amount of physical reserves.
Mini dictionary: TG Commodities is the entity responsible for issuing Tether Gold (XAU₮) and holding the physical gold reserves that back the tokens. It ensures that every XAU₮ in circulation is backed by gold securely stored in Swiss vaults.
Growing role of tokenized gold
Tokenization of gold is rapidly gaining momentum as providers seek to make gold ownership more accessible and efficient through blockchain technology. The World Gold Council, an industry organization representing leading gold producers, has recognized the potential for digital solutions to broaden participation in the gold investment market. The Council’s models estimate that reducing adoption barriers in the sector could drive up to $700 billion in new gold demand.
Blockchain-based assets such as XAU₮ enhance accessibility, allowing investors to manage and transfer gold-backed tokens with ease. However, market growth heightens the importance of regular, independent audits to guarantee that every digital token remains fully backed by physical reserves.
Tether’s recent audit by KPMG acts as a reference point for investors seeking independent verification of physical gold backing in 2025, while ongoing reserve growth in 2026 supports its presence in the competitive market for tokenized precious metals.
Amid the ongoing expansion of Tether’s gold reserves and robust third-party reassurance from KPMG, XAU₮ continues to gain recognition as a significant competitor in both digital and traditional gold markets.
