- XAUT dominance weakens as tokenized gold competitors gain rapid market traction
- Rising gold prices accelerate tokenized assets while reshaping issuer market shares
- Institutional-scale gold accumulation signals growing confidence in blockchain-backed commodities
The tokenized gold market is undergoing a noticeable shift as XAUT’s long-held dominance faces pressure. January trading activity shows that its market share declined while the overall sector expanded quickly. This change emerged during a period of strong momentum in gold prices, which boosted interest in digital gold instruments.
Recent market figures show XAUT now controls slightly more than 50% of the tokenized gold market. That share represents a decline from earlier levels despite stable issuance. XAUT’s market capitalization stands close to $2.6 bn. Meanwhile, the total tokenized gold market has grown to about $5.25 bn. Consequently, faster growth from competing tokens reduced XAUT’s relative position.
A year-end attestation still highlighted XAUT’s leading role at the close of 2025. The audit followed IFRS recognition and measurement standards. It verified the existence and fair value of the gold held by the custodian. However, the auditing firm clarified that the assessment applied strictly to Dec. 31, 2025. It did not include activity outside that reporting date.
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Reserve Backing Confirms 1 to 1 Structure
According to the report issued by TG Commodities S.A. de C.V., the El Salvador-based issuer holds 520,089.350 fine troy ounces of LBMA Good Delivery gold. These reserves support 520,089.300 XAUT tokens currently in circulation. The structure maintains a fixed 1 to 1 backing model. The gold carried a total valuation of $2.25 bn, using a reference price near $4,320 per troy ounce.
The attestation focused on custody and valuation accuracy. It did not assess transactional movements beyond the reporting date. Hence, the document provides a precise snapshot rather than an ongoing reserve update. This distinction remains relevant as trading volumes continue to grow.
Distribution Trends Show Institutional-Scale Activity
From the total minted supply, more than 409,200 XAUT tokens have been sold to market participants. Around 110,870 tokens remain available for sale. Additionally, Tether Gold Investments expanded its gold exposure by roughly 27 metric tons during the fourth quarter of 2025. That volume exceeded purchases made by most individual central banks over the same period.
According to a statement from Tether CEO Paolo Ardoino, operating at this scale places the investment fund alongside sovereign gold holders. He emphasized that such positioning carries responsibility during periods of weakening confidence in monetary systems. He also noted that XAUT aims to reduce uncertainty as market participants reassess traditional financial structures.
Gold Price Surge Drives Sector Expansion
Significantly, spot gold prices surged to record levels, climbing above $5,000 per troy ounce on Monday. They later reached an intraday high above $5,100, intensifying demand across tokenized gold products. Moreover, the market share shift reflects sector growth, not declining interest, as XAUT expanded in absolute terms. However, increased issuance and diversification across tokenized gold offerings diluted its overall share.
XAUT remains the largest issuer in tokenized gold, though rapid sector expansion has narrowed dominance. Consequently, competition is reshaping the landscape as higher gold prices attract capital into digital gold products.
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