Tether positions tokenized gold as a rival to ETFs

Gold ETFs have long made the metal accessible to mainstream investors, but Tether is pitching tokenized gold as a way to make bullion more usable. The World Gold Council estimates tokenization could unlock as much as $700 billion in new investment demand and is developing digital infrastructure for the market.

Trust remains central to the sector’s growth. Tether said Thursday that KPMG completed an independent audit of XAU₮’s 2025 financial statements, including a physical inspection of the underlying gold bars. The audit does not remove every risk associated with tokenized gold, but it ties the digital product to inspected bullion, the company said.

Tether held approximately 165 tonnes of gold at the end of September, despite its total holdings declining by three tonnes in the third quarter. ETFs, however, remain established and regulated investment vehicles with significant institutional support. Tokenized gold still faces challenges around regulation, custody, liquidity and investor confidence.

The competition may spur changes in how investors access and use gold, even if tokens do not replace ETFs. Ardoino’s assertion that XAU₮ can become a true ETF competitor is Tether’s stated ambition, not an established shift in the market.