Tether Gold (XAUT) exemplifies the concept of tokenized gold lending, where digital tokens represent physical gold assets. Tether currently holds approximately $23 billion in physical bullion, which equates to about 140 metric tons, backing its XAUT token. Each XAUT token is pegged to one troy ounce of gold securely stored in vaults located in Switzerland.
This structure affords investors a unique opportunity to engage with gold assets digitally, combining the stability and historical value of gold with the convenience and flexibility of digital currencies. Tether Gold is being integrated into platforms like Ledn, which is set to offer gold-backed loans alongside its existing Bitcoin (BTC) and USDT lending options. These developments highlight Tether’s strategic growth in integrating gold as part of broader financial innovations.
Ledn’s support for tokenized gold lending (XAUT)
Ledn has added support for tokenized gold lending (XAUT), offering the token alongside Bitcoin (BTC) and USDT on its platform. The company plans to enable borrowing against XAUT later this year, expanding its suite of collateral options available to clients. Ledn’s public outline indicates XAUT will be a native addition to its existing product set rather than a third-party integration. This placement positions XAUT alongside the platform’s established assets used for secured lending and custody.
Ledn’s approach to XAUT mirrors its bitcoin-backed lending model, with client collateral held on a one-to-one basis. Under this model, client collateral is maintained 1:1 and is not lent out or used to generate yield, consistent with Ledn’s stated custody practices for other supported assets. Borrowing against XAUT remains expected later this year, following the platform’s integration and rollout schedule.
Gold-backed lending has traditionally been the realm of central banks, major financial institutions and bullion dealers. Tether has invested in Gold.com and partnered with Antalpha to expand the use of XAUT in lending and physical redemption. The company has spent the past few years reshaping itself into a broader technology and infrastructure group spanning finance, energy and AI. “As digital assets become an increasingly important part of the global economy, demand is growing for solutions that combine long-term ownership with financial flexibility,” Paolo Ardoino said.
