In 2025, gold-backed tokens are increasingly popular as investors look for safe havens against sovereign debt, fiat instability, and inflation. Among the leaders is Tether Gold (XAUT), issued by TG Commodities and backed by Swiss vaults. But as strong as its market presence is, XAUT also carries risk — primarily because of its offshore structure and limited transparency.

A new competitor, UTribe’s GIFT Gold, highlights exactly why regulatory safety and transparency matter more than raw size.

Tether Gold (XAUT): The Offshore Heavyweight

• Market Cap: ~$834–844M (Aug 2025 snapshot)
• Unit Size: 1 oz (~$3,379 per token)
• Vaults: Swiss-based storage
• Chains: Ethereum, Tron, TON
• Strengths: Wide availability, strong brand association with Tether

Weaknesses:

• Offshore Issuance: TG Commodities is incorporated offshore, which adds regulatory grey zones.
• Transparency Concerns: Proof-of-reserves reports are less frequent than competitors like Paxos (PAXG).
• High Entry Barrier: 1 oz minimum makes it impractical for retail adoption.

GIFT Gold: Regulated Safety with Inclusivity

Launched in 2025, GIFT Gold brings gold tokenization into a new era.

• Market Cap: Growing, with listings on BitMart (Jul 2025) and Coinstore (Aug 2025).
• Unit Size: 1 mg (~$1 entry point).
• Vaults: Zurich, Stuttgart, Dubai, Copenhagen.

Chains: Ethereum, Polygon, BSC.

• Compliance: MiCA-aligned VASP license in the EU.
• Transparency: Independent audits + insured storage.

Offshore Risk vs Regulated Safety

• XAUT: Offshore status makes it harder for institutions and NBFCs to adopt with confidence.
• GIFT Gold: EU regulatory alignment ensures clarity for both retail and institutional investors.
• XAUT: Swiss vaults are secure but lack multi-location diversification.
• GIFT Gold: Multi-vault system spreads risk geographically.
• XAUT: Value fixed at ounce units, locking out smaller investors.
• GIFT Gold: Fractional from $1, enabling mass adoption globally.

Final Verdict

Tether Gold (XAUT) is a major player, but its offshore model leaves lingering questions. In contrast, GIFT Gold prioritizes safety, regulation, and accessibility.

For long-term trust in 2025, the clear choice is regulated safety over offshore risk.

Gold for All.