Tether Gold (XAUT), launched in January 2020, is a tokenized asset providing digital ownership of physical gold, with each token backed 1:1 by one fine troy ounce of London Good Delivery gold bar. Issued by TG Commodities Limited (a Tether affiliate) and operating on the Ethereum blockchain, Tether Gold combines the stability of gold with blockchain efficiency. It enables easy trading, transfers, and hedging in crypto markets, while allowing redemption for physical gold, serving as a bridge for investors seeking gold exposure without storage hassles.

Key Features

  • Gold-Backed Stability: Pegged to the price of physical gold, offering a hedge against volatility and inflation.
  • Blockchain Support: Available on Ethereum (ERC-20) for secure and interoperable transactions.
  • High Divisibility & Liquidity: Fractionable to six decimal places; traded on major exchanges with significant daily volume.
  • Ecosystem: Used for DeFi collateral, hedging, tokenized real-world assets (RWA), and institutional portfolios.

XAUT Token

  • Purpose: Digital ownership of gold for trading, transfers, storage of value, and physical redemption.
  • Supply: Circulating supply of approximately 520,000 XAUT (as of mid-December 2025), issued based on gold purchases with no fixed maximum.
  • Contract Address: On Ethereum, XAUT’s contract is 0x68749665FF8D2d112Fa859AA293F07A622782F38 (addable to MetaMask).
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    CoinMarketCap

Who Are the Founders of Tether Gold?

Tether Gold was launched by Tether Limited (same entity behind USDT), with roots in the original Tether founders Brock Pierce, Reeve Collins, and Craig Sellars. Operated through TG Commodities Limited, it is managed under the Tether group, now led by CEO Paolo Ardoino, with operations influenced by regulatory shifts including relocation aspects to El Salvador.

What Makes Tether Gold Unique?

Tether Gold (XAUT) distinguishes itself in the tokenized gold space:

  • Market Leadership: Largest tokenized gold asset by market cap (~$2.2–2.3B), capturing over 50% of the sector.
  • Direct Ownership & Redemption: Holders own specific allocated gold bars; redeemable for physical delivery in Switzerland (minimum ~400 oz bar) or fiat.
  • No Custody Fees: Eliminates ongoing storage/insurance costs typical of physical gold or ETFs.
  • Transparency & Growth: Quarterly attestations confirm full backing; reserves grew significantly in 2025 amid gold rally, with Tether becoming a major gold holder.

XAUT Updates (2025)

  • Reserve Growth: Backing expanded to over 12–16 tons of physical gold by late 2025, driven by surging demand and gold prices exceeding $4,300/oz.
  • Integrations & Expansions: New DeFi compatibilities (e.g., Aave supply cap increases), cross-chain transfers (via protocols like LayerZero), and omnichain enhancements for liquidity.
  • Regulatory Focus: Operated under El Salvador’s digital asset framework; emphasis on compliance and transparency with periodic attestations.

How Is XAUT Secured?

Tether Gold and XAUT are secured through:

  • Physical Gold Reserves: 100% backed by allocated LBMA-standard gold bars stored in secure Swiss vaults, verifiable via serial numbers and public tracker.
  • Blockchain Security: Leverages Ethereum’s consensus mechanism.
  • Redemption Process: Direct redemption for physical gold (with verification) or fiat after KYC/AML.
  • Audits: Quarterly independent attestations (e.g., by BDO), confirming over-collateralization and reserve matching.

Conclusion

Tether Gold (XAUT) is the premier tokenized gold asset, delivering physical gold ownership through blockchain for seamless trading, divisibility, and global access. With strong liquidity, full physical backing, and no custody fees, it has become essential for hedging, DeFi, and RWA in the multi-trillion crypto ecosystem. Amid 2025’s gold bull run and Tether’s reserve expansions, XAUT offers resilient exposure to the timeless safe-haven asset.