Tether Gold (XAUT) is a gold-backed token in which each unit represents one fine troy ounce of gold. Its underlying gold sits on London Good Delivery bars in Swiss vaults, and the token is issued as an ERC-20 asset on Ethereum. The product was launched in 2020 by TG Commodities, S.A. de C.V.
Core technology and blockchain architecture
The original XAUT token is an ERC-20 on Ethereum with 6 decimal places. Cross-chain versions are issued under a separate token, XAUT0, through the USDT0 omnichain framework built on LayerZero. XAUT0 first launched on TON in June 2025, followed by Polygon, Arbitrum, and Solana in 2025. Tether announced XAU₮ availability on BNB Chain on 26 March 2026, and Conflux went live in April 2026. Under this model, the original XAUT is held in an OFT Adapter on Ethereum while XAUT0 is minted on other networks.
Primary use cases and real-world applications
Holders gain gold exposure without storing or insuring physical bullion. Tether says the token trades 24/7 on listed exchanges and can be redeemed into Swiss-delivered bars. Direct purchases from TG Commodities require a 50 XAU₮ minimum. Redemption carries a one-time fee of 25 basis points on the Swiss gold market price, plus delivery cost, and the sources state there are no custody fees.
The token is also used as collateral. Ledn announced XAUT support on 18 June 2026, with borrowing expected later in 2026. Arch Lending began accepting PAXG and XAUT as collateral on 1 September 2026 at loan-to-value ratios of up to 75%. Alloy by Tether uses XAUT as collateral for its AbT tokens, with a 0.75% liquidation fee.
Who is behind Tether Gold and where is it based?
The issuer is TG Commodities, S.A. de C.V., a company incorporated in El Salvador and wholly owned by Tether Holdings, S.A. de C.V. Tether's terms state that TG Commodities Limited, a British Virgin Islands company, redomiciled to El Salvador with effect from 27 January 2025. Its registered office is in San Salvador. A July 2025 Tether release describes it as a registered Stablecoin Issuer and Digital Asset Service Provider under El Salvador's Digital Asset Issuance Law.
Tether's website lists Paolo Ardoino as Chief Executive Officer and Giancarlo Devasini as Chairman. The 2025 reserves attestation names Devasini as Sole Administrator of TG Commodities. The sources do not name founders, developers, or a separate development team specific to XAUT. The Swiss custodian is not named in the attestation.
Tokenomics and supply
The CoinStats snapshot shows a price of $3,878.58, a 24h change of -0.12%, a 7d change of -2.86%, and a 30d change of -7.27%. Market capitalization is $3.14B (rank #41), and 24h volume is $64.22M. Circulating supply is 808,995 XAUT and total supply is 827,418 XAUT. The all-time high is $5,504.62, and the current price is 29.54% below it.
XAUT has no fixed maximum supply. Tokens are minted against gold deposited in the reserves and redeemed against gold, so supply tracks reserves. The sources describe no burn or emission schedule beyond this minting and redemption. The most recent attested figure is 707,747.139 fine troy ounces of gold at 30 June 2026, held as 1,759 London Good Delivery bars plus smaller bars.
Consensus mechanism and security model
XAUT has no consensus mechanism of its own. It inherits security from its host chains, including Ethereum, Tron, and BNB Chain. Its security rests on three layers:
- Attestations: BDO reviews quarterly reserve reports under ISAE 3000 Revised.
- Third-party audit: 8Blocks rates the smart contract and reserve setup 61/100 (grade BBB), noting that the custodian is unnamed and contract keys have no timelock. The same analysis reports a 137,254 XAUT gap between on-chain figures and the last attested reserve.
- Admin controls: On Arbitrum, XAUT0 admin powers include minting, clawback, and freezing balances. A 3-of-5 multisig holds these powers.
Tether's KPMG audit covers Tether International's financial statements, not XAUT specifically.
Key partnerships and ecosystem integrations
- Ledn: Tether made a strategic investment in Ledn in November 2025.
- Banxa: Added XAUT to on- and off-ramp support in May 2026.
- Gold.com: Tether acquired a 12% stake for $150 million in February 2026 to expand tokenized gold distribution.
- MetaComp: Completed an institutional proof of concept for XAUT in April 2026.
- Aave and Arch Lending: Accept XAUT as lending collateral.
Competitive advantages and unique value proposition
Tether describes XAU₮ as the world's largest tokenized gold product by market capitalization, a self-reported claim. Its main competitor, PAX Gold (PAXG), is issued by Paxos Trust Company, N.A. and held in London vaults. XAUT differs in its Swiss custody and its cross-chain deployment through USDT0. Reuters reports that US regulation of gold tokens remains unclear.
Jefferies has estimated that Tether may hold more gold than it discloses, a view the sources present as contested.
Current development activity and roadmap highlights
Chain expansion has been the main development activity. Reserves rose from 246,524 oz in June 2025 to 707,747 oz in March 2026 and held at that level through Q2 2026. Gold-backed borrowing on Ledn is expected later in 2026. Tether publishes quarterly reserve reports, and the most recent covers 30 June 2026. The sources do not describe a public roadmap or release schedule.