A Larger Physical Reserve Base

Tether said on November 4 that the physical gold backing XAUT was worth approximately $3.44 billion at the end of September. Its report lists about 827,418 fine troy ounces, or 25.7 tonnes, held in reserve. The company says physical reserves increased 59 percent from the end of 2025.

The report separately describes 73 percent growth in customer holdings. These percentages measure different things and should not be treated as interchangeable. Tether also separates tokens sold from tokens available for sale, providing a clearer picture than a single headline figure for the entire reserve inventory.

Gold Quantity and Market Value Can Diverge

The value of a gold reserve changes when the quantity of metal changes and when the market price of gold changes. A percentage increase in ounces therefore need not match the increase in dollar value. Keeping both measures visible helps readers distinguish new inventory from changes in the value of existing inventory.

Tokenization changes the way an interest in an asset can be recorded and transferred. It does not remove the economic exposure to that asset. A gold-backed token can still rise or fall in market value with gold, and its trading price can also be influenced by the liquidity and conditions of the venue where it changes hands.

The Physical and Digital Records Must Connect

Tether says each full XAUT token is backed by one fine troy ounce of physical gold and represents an interest in identified bars held in Switzerland. Its quarter-end figures include approximately 709,324 tokens sold and 118,094 available for sale. Those categories explain why total reserve backing exceeds the value associated solely with sold tokens.

For holders, the connection between a digital balance and physical custody is central. Reserve reporting, identification of the metal and the terms governing redemption all help explain that relationship. A blockchain record can show token movements, but it cannot independently demonstrate every fact about the location, condition or custody of physical bars.

The quarterly update adds measurable information about the reserve base and how it is allocated. Its usefulness comes from the detail behind the headline, particularly the distinction between quantity, value and customer holdings. Future comparisons should retain those same categories so changes in demand, inventory and gold prices can be assessed without mixing separate measures.