Tether Gold (XAU₮), the gold-backed digital asset issued by TG Commodities, S.A. de C.V., has completed an independent financial audit conducted by KPMG U.S., receiving an unqualified audit opinion for its financial statements covering the year ended December 31, 2025. The result represents the highest level of assurance an independent auditor can provide and marks another milestone in Tether’s efforts to strengthen transparency across its digital asset offerings.
The development makes XAU₮ the second stablecoin within the Tether ecosystem to achieve this level of independent financial scrutiny. The first was USD₮, whose issuer, Tether International, completed a similar audit in August 2026.
The latest audit examined the financial position and underlying reserves of the gold-backed token, providing an independent assessment of the physical assets supporting its issuance.
KPMG Verifies More Than 520,000 Ounces of Physical Gold
According to the audited financial statements, XAU₮ was fully backed by 520,089.350 fine troy ounces of allocated physical gold as of December 31, 2025. The reserves were valued at approximately $2.246 billion at the reporting date.
Each XAU₮ token represents an undivided ownership interest in specifically identified gold bars held in Swiss vaults. The physical gold meets the London Good Delivery standards, which establish internationally recognized requirements for the quality, weight, and identification of gold bars used in professional bullion markets.
As part of its verification process, KPMG physically inspected and counted the gold bars supporting the tokens. The auditor also examined their identifying information to establish that the reported assets existed, rather than relying exclusively on confirmations provided by third-party custodians.
The physical inspection and verification of the underlying gold reserves provide independent evidence that XAU₮ was fully backed by allocated gold worth approximately $2.246 billion at the end of 2025.
Unqualified Opinion Strengthens Financial Transparency
An unqualified audit opinion indicates that an auditor considers the financial statements to present the company’s financial position, operating results, and cash flows in accordance with U.S. generally accepted accounting principles (GAAP).
For XAU₮ holders, the assessment provides an additional layer of financial transparency regarding the assets supporting the digital token. This is particularly relevant for institutional investors and individuals seeking blockchain-based exposure to gold without directly managing physical bullion.
The audit also complements Tether’s existing quarterly reserve reporting practices. By subjecting its gold-backed asset issuer to an independent financial examination, the company is seeking to provide greater assurance about the relationship between its digital token supply and the physical commodities held in reserve.
Tether Sees Opportunity to Challenge Traditional Gold ETFs
Tether CEO Paolo Ardoino highlighted the potential of XAU₮ to compete with conventional gold exchange-traded funds (ETFs). He pointed to the token’s potential advantages, including lower custody expenses, increased transparency, and faster settlement through blockchain technology.
The comparison reflects Tether’s broader ambition to bring traditional financial assets onto blockchain networks. Gold ETFs provide investors with exposure to gold prices through exchange-traded financial products, while XAU₮ offers a tokenized structure backed by allocated physical bullion.
Tether Chief Financial Officer Simon McWilliams also outlined the company’s approach to financial transparency. He indicated that the company had deliberately prioritized its largest and most complex asset operations, USD₮ and XAU₮, when establishing a framework for independent financial scrutiny.
The strategy suggests that Tether intends to apply similar transparency standards across its wider stablecoin operations as its digital asset business expands.
Tokenized Gold Gains Institutional Relevance
The successful audit highlights the growing intersection between traditional commodities and blockchain-based financial products. Tokenized gold can potentially offer investors access to ownership interests in physical bullion while benefiting from digital transfer and settlement capabilities.
By combining allocated physical gold with blockchain-based ownership and settlement, XAU₮ aims to provide an alternative structure for investors seeking exposure to gold through digital financial infrastructure.
Although Tether has described the token as a potential competitor to the traditional gold ETF market, its long-term adoption will depend on investor demand, regulatory developments, liquidity, and confidence in its custody arrangements.
The KPMG audit adds an independent layer of financial verification to that proposition, reinforcing Tether’s efforts to connect traditional reserve-backed assets with the expanding digital asset market.