What is Tether Gold (XAUT)?

In the traditional financial world, gold has been considered a safe haven for centuries. When inflation rises, markets fluctuate, or economic uncertainty intensifies, gold is often one of the first assets investors turn to. However, investing in physical gold also presents some practical challenges: storage, insurance, transportation, and liquidity issues make it difficult for this precious metal to fully serve investors in the digital age. This is where Tether Gold (XAUT) comes in.

Tether Gold (XAUT) is a digital asset pegged one-to-one to physical gold. This means that each XAUT token represents one troy ounce (approximately 31.1 grams) of pure gold meeting London Good Delivery standards. These gold coins are stored in high-security vaults in Switzerland, and investors can redeem these digital tokens for actual gold bullion if they wish. This combines both the security of physical gold and the flexibility of digital assets in one structure.

Tether Gold is essentially a form of gold traded on the blockchain. This largely eliminates the logistical and operational challenges encountered in traditional gold buying and selling processes. Users can buy XAUT online, store it in their wallets, and transfer it anywhere in the world in minutes, without having to go to banks or physical gold stores.

Moreover, because Tether XAUT can be traded on the Ethereum (ERC-20) and Tron (TRC-20) networks, it offers broad compatibility within the crypto ecosystem and simplifies transfers. This allows investors to conveniently store XAUT tokens in their digital wallets and quickly buy and sell on various platforms when needed.

Let's explore the details of Tether Gold, which bridges the gap between traditional finance and cryptocurrency, and answer questions like "What is Tether Gold?" and "What is XAUT coin?"

The Definition and Origin of Tether Gold

USDT, one of the first projects that comes to mind when one thinks of "stablecoin," "stablecoin," or "stablecoin" in the cryptocurrency market, has been managed by Tether Limited for years. Known for its financial stability and dollar-pegged nature, this digital asset was developed with Tether's robust technical infrastructure and market experience. This same team set out to offer investors a cryptoasset pegged not only to the dollar but to a real and tangible commodity: gold. As a result of this vision, Tether Gold (XAUT) was launched in 2020.

Tether Gold is managed through TG Commodities Limited, a subsidiary of Tether Limited established specifically for gold transactions. Each XAUT token is pegged one-to-one to one troy ounce (approximately 31.1 grams) of high-purity, quality gold bullion recognized by the LBMA (London Precious Metals Market Association). This means that when you hold 1 XAUT in your digital wallet, you actually own 1 troy ounce of gold, physically stored in a secure Swiss vault.

These gold coins are tokenized on the blockchain, meaning your ownership is documented completely digitally, transparently, traceably, and securely. Furthermore, thanks to this system, which is directly related to physical gold, your digital asset is not just a number; it has a tangible value in the real world.

Tether, the company behind Tether Gold, has already established a strong trust in the crypto world. This structure, which has reached billions of dollars in trading volume along with USDT, operates under the umbrella of iFinex and is directly linked to Bitfinex, a cryptocurrency exchange. This institutional background helps position XAUT as a reliable asset in the eyes of investors.

Tether Gold tokens are designed to be traded on the Ethereum (ERC-20) and Tron (TRC-20) blockchains from the moment they are released. This allows users to easily transfer XAUT tokens to any digital wallet that supports these networks. This means users can securely store their XAUT using popular wallets like MetaMask, Trust Wallet, or TronLink and send it anywhere in the world with just a few clicks.

This technical feature makes Tether Gold far more practical than traditional gold investing. Just think, what would you have to go through if you wanted to buy and send gold to someone the traditional way? Going to the bank, renting a safe, taking on the risks of transportation… But with XAUT, these transactions are now completely digital. In just a few minutes, you can send gold on-chain to a user on the other side of the world or buy and sell XAUT from your mobile device. We can compare XAUT with regular, physical gold in the following table:

Feature	Physical Gold	Tether Gold (XAUT)
Collateral	Real gold	Real gold (1 XAUT = 1 troy ounce)
Transfer Ease	Difficult, requires physical transport	24/7 digital transfer (Ethereum/Tron)
Storage	In vaults, at home, in banks	In a digital wallet
Divisibility	Limited	High (can be bought in very small amounts)
Liquidity	Dependent on jeweler/bank hours	Instant trading on centralized exchanges
Accessibility	Location-dependent	Global, internet access is enough
Security Risk	Risk of physical theft or loss	Digital security (private key protection)
Trading Hours	Limited (weekdays, business hours)	Always open (via blockchain)
Auditing and Transparency	Personal control	Regular audits by Tether

Tether Gold History: Key Milestones

Since its launch in 2020, Tether Gold (XAUT) has become a notable asset in both the crypto ecosystem and the traditional financial world. Enabling digital gold investment, the Tether gold coin project has made it an attractive option for both individual investors and institutional portfolios. Listings on various exchanges since its launch, increasing demand due to global economic developments, and partnerships with payment systems have played a critical role in Tether Gold's development. Below, you can examine XAUT's key historical milestones and growth process step by step:

• 2020: Launch - Tether Gold was introduced by Tether in January 2020. This marked the entry of one of the first major digital assets backed by physical gold into the blockchain world. At the launch, each XAUT token was exchanged for 1 ounce of gold in a LBMA-approved bullion. 2021: Trading on centralized exchanges - Early on, Bitfinex, Gate.io, and several other crypto exchanges began listing XAUT. This step increased Tether Gold's liquidity and accessibility; users can now easily buy and sell XAUT on centralized exchanges.
• 2022–2023: Demand for gold begins to increase - 2022 and 2023 were periods of volatility and uncertainty in the global economy. Inflation rates in many countries, especially the US and Europe, reached multi-decade highs; in the US alone, inflation exceeded 9% in the summer of 2022, alarming investors. In this environment, central bank interest rate hikes accelerated, while the Russo-Ukrainian war and energy crises also heightened risk perception in the markets. All these developments led investors to turn to gold, the traditional safe haven. Gold rose rapidly from $1,800 in 2022, approaching the $2,000 level in March. Despite fluctuations, it recovered in 2023, maintaining a strong trend between $1,900 and $2,050. This price increase was felt not only in the physical gold market but also in gold-backed digital assets.
• Tether Gold (XAUT), in particular, attracted attention due to its one-to-one peg to physical gold and its accessibility through blockchain technology. Investors sought an asset that maintained its value while offering the speed and convenience of the crypto world, turning to assets like XAUT. During this period, demand for XAUT increased significantly; trading volumes expanded, exchange listings increased, and institutional investors began adding this digital gold to their portfolios. In short, the upward momentum in gold prices created a shining star for XAUT among physical gold-backed cryptocurrencies.
• 2024-2025: Institutional adoption and integrations - Starting in 2023, Tether Gold significantly expanded its use through integrations with payment systems and exchanges. In June 2023, Web3-based e-commerce platform Uquid accepted XAUT tokens as a direct payment method, allowing users to purchase real goods with the physical gold-backed digital asset. In 2024, a partnership with Alchemy Pay made VND/XAUT transactions available with zero commissions for users in Vietnam. By 2025, XAUT's international exchange listings also increased: exchanges such as FameEX, Maxbit (Thailand), and UZX launched spot and margin trading for the XAUT/USDT pair. Thanks to these strategic integrations, Tether Gold has become a functional digital gold asset, capable of making payments and global transfers, in addition to being an investment tool. However, it's worth noting that it is still not listed on Coinbase or Binance.
• 2025: Gold continues to rise - As of 2025, the upward trend in gold prices continues. Factors such as interest rate uncertainty in the US and Europe, the cautious stance of central banks, and geopolitical tensions in the Middle East have led investors to return to gold. In this environment, the price of gold per ounce rose to $3,433 by June 2025, testing all-time highs. This increase fueled continued interest in Tether Gold.

Why Is Tether Gold Valuable?

So far, we've discussed Tether Gold's definition, its origins, and the milestones it has achieved since its launch. So, what distinguishes XAUT from other digital assets and makes it so valuable? What are XAUT's benefits? Let's examine them in detail.

It's backed one-to-one by physical gold

Tether Gold's most fundamental value lies in its being backed one-to-one by physical gold. Crypto markets are generally highly volatile, but because XAUT is backed by actual gold, it tends to maintain its price relatively consistently. In other words, XAUT is considered a "safe haven" asset in the crypto world. Investors often turn to gold during periods of high inflation and economic uncertainty; Tether Gold fulfills a similar role by leveraging this safe haven approach to blockchain technology.

A Fully Digital Asset

On the other hand, perhaps Tether Gold's biggest difference is that it is a fully digital, on-chain asset. In other words, even though XAUT represents a physical asset, all transactions occur on the blockchain. This offers significant advantages over traditional gold trading processes. For example, purchasing physical gold might require a trip to a jeweler, a bank transfer, or the worry of storing it. However, with XAUT, this process is completely transformed.

24/7 Gold Transaction Opportunity

XAUT tokens can be traded uninterruptedly 24/7 on the Ethereum and Tron blockchains. While traditional gold markets are closed on weekends or holidays, XAUT investors can buy and sell at any time and react instantly to price movements. This flexibility is particularly advantageous in volatile market conditions.

Investment Opportunity with Small Denominations

Another key feature is XAUT's easy divisibility. While physical gold typically requires a specific weight, digital gold, XAUT, allows you to invest even very small amounts. This allows even small investors to enter the gold market. Instead of buying a gold bullion, you can participate in gold price movements by purchasing just a few dollars' worth of XAUT. In other words, Tether Gold provides investors with a liquid, geographically and time-sensitive gold experience.

A Strong Tether Brand

One of the most important factors contributing to Tether Gold's value is the reputation of the company that developed it in the crypto world. XAUT is backed by Tether, a company with billions of dollars in trading volume and global recognition for its USDT. This structure is also linked to a well-established exchange like Bitfinex. Consequently, investors trust XAUT not only for its technical features but also for its strong brand and infrastructure. While Tether's name has already created a "safe haven" perception in the market, XAUT is seen as a version of this trust combined with gold. However, it's important to remember that Tether's reserve transparency has been criticized in the past, and each investor should conduct their own risk assessment.

Who is the Founder of Tether Gold?

As mentioned earlier, Tether Gold (XAUT) was developed by Tether Limited, one of the most established and well-known companies in the cryptocurrency ecosystem. Tether made its name globally with USDT, the world's largest US dollar-pegged stablecoin. Following the success of USDT, which reached a multi-billion dollar market capitalization, the company took a new step: this time, it aimed to create an asset pegged to physical gold, not the dollar. As a result of this vision, Tether Gold (XAUT) was launched in 2020.

Tether Gold's operational processes are carried out through TG Commodities Limited, the privately held subsidiary that manages Tether's gold assets. Tether itself is operated by Hong Kong-based iFinex Inc. and is directly connected to the Bitfinex exchange, which operates under the same umbrella.

Paolo Ardoino, Tether's chief technology officer (CTO) and CEO as of 2023, also played a key role in the development of Tether Gold. Ardoino, known for his numerous pronouncements in the crypto world, frequently emphasizes Tether's pioneering role not only in stablecoins but also in creating digital solutions based on physical assets. Under his leadership, Tether has further advanced its vision of integrating traditional finance with blockchain, launching projects like XAUT.

So, does this digital gold truly carry physical value? According to the company's statements and reserve reports, yes. Each XAUT token is collateralized with a one-to-one equivalent of one troy ounce (approximately 31.1 grams) of pure gold, held in highly secure vaults in Switzerland, according to London Good Delivery standards. In other words, the XAUT you hold digitally is backed by tangible gold in real life.

Tether regularly reports the existence and security of these reserves through independent auditors. According to the company's most recent data published in April 2025, XAUT's total reserve value exceeds $770 million. However, according to statements made to Bloomberg in July 2025, this amount is around $8 billion.

Frequently Asked Questions (FAQ)

We've provided comprehensive information about Tether Gold (XAUT). However, investors new to the crypto world may still have some basic questions. In this section, you can find answers to some frequently asked questions about Tether Gold:

• What is Tether Gold (XAUT) and how does it work? Tether Gold is a crypto asset backed by physical gold. Each XAUT token represents one troy ounce of gold stored in secure Swiss vaults. These tokens operate on the Ethereum and Tron blockchains (ERC-20 and TRC-20, respectively), and owners can buy and sell this digital gold at any time.
• Is XAUT truly backed by gold? Yes. Tether holds one troy ounce of physical gold in its vaults for every XAUT token they hold. Investors can track the existence and quantity of these gold reserves through the company's published reports. This way, the value of the XAUT token is based on the actual gold backing.
• What networks can it be transferred on? XAUT tokens are transferable on the Ethereum network (ERC-20 standard) and the Tron network (TRC-20 standard). This means that a XAUT holder can easily move their tokens to both an Ethereum wallet and a Tron wallet.
• Where to buy XAUT? How to buy XAUT tokens? Tether Gold is listed on many major cryptocurrency exchanges. XAUT can be purchased on exchanges such as Gate.io, Bitfinex, and Coinbase; some offer direct trading pairs with USDT or other cryptocurrencies. After purchasing, you can withdraw your tokens to your Ethereum or Tron wallet and keep them securely on the blockchain.
• Is physical gold delivery possible? Yes, if you are in Switzerland. XAUT token holders in Switzerland can convert their tokens into real gold bars. Tether's official website states: "If you wish to convert your XAUT tokens into physical gold, you can do so. We deliver physical gold bars to any address in Switzerland." What's the difference between USDT and XAUT? USDT (Tether USD) is a stablecoin pegged 1:1 to the US Dollar. XAUT, however, is backed by physical gold. This means USDT holders have stable access to dollars, while XAUT holders invest in actual gold. While USDT is the digital form of the dollar, XAUT is like "digital gold," its value tied to the price of the underlying gold.

For detailed information about Tether Gold, the modern way to invest in gold in the digital world, check out the JR Kripto guide series.