Tether Gold (XAUt) is a stablecoin pegged to the price of gold. Tether, the company behind the stablecoin USDT, issues it. It is an ERC-20 token operating on the Ethereum blockchain, launched for the first time in January 2020. Each unit of Tether Gold represents one troy fine ounce of gold and is supported by physical bars that adhere to the London Good Delivery (LGD) standard. ^[1]

Overview

Tether Gold (XAUt) is a blockchain-based token launched in 2020 by TG Commodities to represent ownership of physical gold. Each token corresponds to one fine troy ounce of gold stored in secure, compliant vaults. Tokens are divisible up to six decimal places, allowing for fractional ownership.

XAUt enables 24/7 global trading and eliminates the logistical challenges of storing and transporting physical gold. Each on-chain address holding XAUt is linked to specific gold bars identified by serial numbers. Tether reallocates physical gold when transferring tokens, maintaining a one-to-one backing with specific bars.

Token holders can redeem XAUt for physical gold—delivered to a location in Switzerland—or request a sale of the gold and receive the proceeds. Redemption requires meeting minimum thresholds, paying fees, and completing identity verification. XAUt can be acquired directly through Tether or on secondary markets. ^[3]

Utility

Tether Gold (XAU₮) offers several practical advantages over physical gold ownership. Like other cryptocurrencies, the tokens are easy to transport, removing the logistical challenges of moving physical gold. They are divisible to one-millionth of a troy ounce, allowing precise, flexible investments. XAU₮ tokens trade 24/7 on supported exchanges worldwide, unlike physical gold, which is limited by location and market hours. Holders can redeem tokens for physical gold bars delivered in Switzerland. Storage of XAU₮ tokens is simple and avoids the high costs and geopolitical risks of storing physical gold. Additionally, each token's physical gold backing is fully verifiable online, with detailed allocation information. Each token corresponds to ownership of one fine troy ounce of gold, held securely in a Swiss vault, with no custody fees, and is available as ERC-20 on Ethereum and TRC-20 on TRON blockchains. ^[3]