While Bitcoin (BTC) is often described as digital gold, a tokenized commodity offering direct exposure to the physical metal is quietly gaining traction.
By the end of the second quarter, Tether Gold (XAUt) — a tokenized asset issued by the stablecoin provider behind USDt — was backed by 7.66 tons of gold, according to the company’s latest attestation report. The reserve supports more than 259,000 XAUt tokens in circulation, giving the asset a total market value of over $800 million.
The rise of Tether Gold reflects a broader surge in demand for physical bullion, which has hit multiple record highs this year amid renewed inflation concerns and market unease driven by the White House’s tariff agenda.
While many investors still prefer holding physical gold, many institutions are turning to its digital counterpart. Just this week, Bitcoin (BTC) treasury company Twenty One Capital announced that its BTC holdings have exceeded initial projections.
This week’s Crypto Biz explores the momentum behind Tether Gold, Twenty One Capital’s growing Bitcoin reserves, the expansion of tokenized finance on Avalanche and a recent Securities and Exchange (SEC) approval that could streamline the launch of crypto investment products.
Tether Gold sees continued growth as bullion hits record highs
Tether Gold has increased its physical bullion reserves as demand for its XAUt token continued to grow in the first half of the year, according to the latest attestation report from BDO Italia. XAUt, which closely tracks the market value of gold, has surged 40% over the past year.
Launched in January 2020, XAUt has gained significant traction recently as investors seek protection against currency debasement, persistent inflation and potential economic fallout from US President Donald Trump’s tariff agenda.
The appetite for gold extends beyond retail and institutional investors. According to the World Gold Council, central banks added more than 1,000 metric tons of gold in 2024, marking the third consecutive year they’ve surpassed that threshold.
Twenty One Capital’s Bitcoin holdings reach 43,500 BTC
Bitcoin treasury firm Twenty One Capital has expanded its BTC holdings, underscoring the ongoing institutional race to accumulate what many view as the world’s hardest asset.
According to Bloomberg, the Cantor Fitzgerald–backed company received an additional 5,800 BTC from stablecoin issuer Tether, bringing its total holdings to approximately 43,500 BTC — about 1,500 BTC more than initially projected at launch.
At current market prices, Twenty One Capital’s Bitcoin reserves are valued at over $5.1 billion. Since its April launch, the company has already become one of the top three corporate Bitcoin holders, trailing only Strategy and MARA Holdings, according to industry data.
Avalanche gets RWA boost
Avalanche has secured a $250 million real-world asset (RWA) infusion after institutional-grade credit protocol Grove announced it will allocate capital to two Janus Henderson investment products targeting US Treasurys and collateralized loan obligations (CLOs), in partnership with Centrifuge.
The capital will be deployed into the Janus Henderson Anemoy Treasury Fund, an actively managed onchain fund providing exposure to short-term US T-bills, and the Janus Henderson Anemoy AAA CLO Fund, which offers tokenized access to the CLO market.
Grove, backed by Steakhouse Labs and incubated by Sky (formerly MakerDAO), aims to bring institutional credit strategies onchain.
The move underscores the growing momentum of RWAs on the Avalanche blockchain, at a time when Ethereum’s dominance in the RWA sector is beginning to erode.
SEC greenlights in-kind redemptions for crypto ETFs
US cryptocurrency exchange-traded fund (ETF) issuers received a significant regulatory win this week as the SEC approved in-kind creations and redemptions — a change that allows fund managers to exchange ETF shares directly for the underlying crypto assets, rather than cash.
“It’s a new day at the SEC, and a key priority of my chairmanship is developing a fit-for-purpose regulatory framework for crypto asset markets,” said SEC Chairman Paul Atkins, who described the rule change as a move that will make crypto ETFs “less costly and more efficient.”
The updated redemption rules apply to both Bitcoin and Ether (ETH) spot ETFs, which were approved in 2024.
While Bitcoin ETFs have enjoyed strong inflows since launch, Ethereum ETFs are now gaining momentum. BlackRock’s iShares Ethereum ETF recently surpassed $10 billion in assets, reaching the milestone at the third-fastest pace in US ETF history.
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