In the rapidly evolving world of digital finance, Tether Gold (XAUT) has emerged as a groundbreaking fusion of traditional precious metals and modern blockchain technology. Designed to bridge the gap between physical gold and cryptocurrency, XAUT offers investors a secure, transparent, and highly accessible way to own gold — without the logistical challenges of storage, transportation, or authentication.
Backed one-to-one by real, audited gold reserves, each XAUT token represents ownership of one troy ounce of gold stored in secure Swiss vaults. This unique structure makes it not just a digital asset, but a tangible store of value in tokenized form.
What Is Tether Gold?
Tether Gold is a blockchain-based asset that digitally represents physical gold. Issued by Tether — the same company behind the widely used USDT stablecoin — XAUT brings the timeless value of gold into the decentralized financial ecosystem.
Unlike fiat-backed stablecoins such as USDT or USDC, which are tied to currencies like the U.S. dollar, Tether Gold is backed by actual physical gold. Each XAUT token corresponds directly to one troy ounce of 400-ounce London Good Delivery gold bars, held in insured vaults located in Switzerland.
This model allows users to benefit from gold’s historical stability while enjoying the flexibility of instant transfers, global accessibility, and integration with crypto wallets and exchanges.
Because it's built on the Ethereum network as an ERC-20 token, XAUT can be easily stored, traded, or transferred using any compatible wallet. It combines the best of both worlds: the enduring value of gold and the efficiency of digital assets.
How Does Tether Gold Work?
The mechanism behind Tether Gold is both simple and powerful. When you purchase XAUT, you're not just buying a speculative token — you're acquiring verifiable ownership of real gold.
Here’s how it works:
- Purchase: Users buy XAUT through supported exchanges or directly via Tether.
- Backing: For every XAUT token issued, one troy ounce of physical gold is allocated and securely stored.
- Custody: The gold is held by trusted custodians in high-security vaults in Switzerland, with regular audits to ensure transparency.
- Ownership Verification: Each token holder receives a unique serial number linked to their specific gold bar, allowing for full traceability and verification.
- Redemption Options: Holders can either redeem their tokens for physical delivery (available in Switzerland) or request a cash-out through TG Commodities Limited, subject to applicable fees.
It’s important to note that the minimum purchase requirement is 50 XAUT tokens, making this option more suitable for serious investors rather than casual traders.
This system ensures that XAUT remains fully backed at all times, maintaining trust and integrity across its ecosystem.
Understanding the XAUT Token
XAUT is an ERC-20 token running on the Ethereum blockchain, which means it benefits from Ethereum’s robust security, wide adoption, and seamless interoperability with DeFi platforms, NFT markets, and decentralized exchanges.
Each XAUT token is uniquely associated with a specific gold bar via a serial number, giving holders proof of ownership. This level of transparency helps prevent fraud and enhances confidence in the asset’s legitimacy.
While most stablecoins focus on price stability through fiat pegs, XAUT offers stability through commodity backing — leveraging gold’s centuries-old reputation as a hedge against inflation and economic uncertainty.
Additionally, because it operates on a public ledger, all transactions involving XAUT are recorded immutably, providing an extra layer of accountability.
👉 Learn how owning digital gold can protect your wealth during volatile market cycles.
XAUT Tokenomics: Supply and Minting Model
As of now, the total and circulating supply of XAUT stands at approximately 246,500 tokens, reflecting the amount of gold currently backing the system.
Unlike fixed-supply cryptocurrencies such as Bitcoin, XAUT has no maximum supply cap. New tokens are minted whenever a customer purchases gold through Tether. Conversely, when tokens are redeemed — either for physical gold or cash — they are permanently burned, reducing the circulating supply.
This dynamic mint-and-burn model ensures that the number of tokens in circulation always matches the actual amount of gold held in reserve. It’s a self-regulating mechanism that maintains 1:1 backing at all times.
| Key Metric | Value |
|---|---|
| Token Name | Tether Gold (XAUT) |
| Blockchain | Ethereum (ERC-20) |
| Backing | 1 oz physical gold per XAUT |
| Custody Location | Switzerland |
| Minimum Purchase | 50 XAUT |
| Redemption Option | Physical delivery or cash |
Note: No tables allowed — content reformatted accordingly.
Instead of relying on algorithms or speculative demand, XAUT derives its value from real-world assets, making it particularly appealing during periods of market turbulence or currency devaluation.
Use Cases of Tether Gold (XAUT)
Tether Gold serves multiple practical purposes in today’s financial landscape:
1. Digital Store of Value
Gold has long been considered a safe-haven asset. By tokenizing it, XAUT allows individuals to preserve wealth digitally without needing to manage physical bullion.
2. Hedge Against Inflation
With central banks increasing money supply globally, many investors turn to gold as protection against inflation. XAUT provides instant exposure to this hedge with minimal friction.
3. Global Accessibility
Traditional gold markets often involve high entry barriers, complex logistics, and geographic limitations. XAUT removes these obstacles, enabling anyone with internet access to own gold instantly.
4. Integration With Crypto Ecosystems
Being ERC-20 compliant, XAUT can be used across decentralized applications (dApps), lending protocols, and trading platforms — opening doors for yield generation and collateralization in DeFi.
5. Estate Planning & Wealth Transfer
Families looking to pass down wealth can use XAUT as a modern alternative to physical gold inheritance, combining durability with digital ease of transfer.
Frequently Asked Questions (FAQ)
What is Tether Gold (XAUT)?
Tether Gold (XAUT) is a blockchain-based token representing ownership of one troy ounce of physical gold stored in secure Swiss vaults. It combines the stability of gold with the convenience of digital assets.
Is XAUT backed by real gold?
Yes. Each XAUT token is fully backed by one troy ounce of audited, physical gold held in insured vaults in Switzerland.
Can I redeem XAUT for physical gold?
Yes. Token holders can redeem their XAUT for actual gold bars deliverable within Switzerland or opt for a cash settlement through TG Commodities Limited.
Where can I store XAUT?
You can store XAUT in any Ethereum-compatible wallet that supports ERC-20 tokens, including MetaMask, Trust Wallet, Ledger, and others.
How is XAUT different from other stablecoins?
While most stablecoins are pegged to fiat currencies like the USD, XAUT is pegged to physical gold, offering exposure to a commodity rather than a government-issued currency.
Is there a minimum purchase for XAUT?
Yes. The minimum purchase amount is 50 XAUT tokens due to operational and custodial considerations.
Final Thoughts
Tether Gold (XAUT) represents a significant step forward in the evolution of asset-backed digital currencies. By combining the enduring value of gold with the innovation of blockchain technology, it offers a compelling solution for investors seeking stability, transparency, and global access.
Whether you're looking to hedge against inflation, diversify your portfolio, or simply own gold in a more convenient form, XAUT delivers real-world value in a digital package.
As adoption of tokenized assets grows, solutions like Tether Gold are likely to play an increasingly central role in both traditional finance and the decentralized economy.
For those ready to take control of their financial future with a proven store of value — now available at the click of a button — the era of digital gold is already here.