Tether will launch XAUT gold-collateralized lending service, further expanding the applications of tokenized gold.

Tether is putting its approximately $23 billion in gold reserves to further use, partnering with crypto lending platform Ledn to expand use cases for its tokenized gold product Tether Gold (XAUT). Ledn has announced support for XAUT and plans to launch XAUT-collateralized lending services later this year, joining its existing offerings of Bitcoin and USDT-backed loans. Per available details, each XAUT token is backed by one troy ounce of physical gold stored in Swiss vaults. Tether states it holds around $23 billion in gold reserves, providing 1:1 backing for XAUT. Going forward, users will be able to access liquidity without selling their gold assets by collateralizing XAUT, a model similar to Bitcoin-backed lending. Tether CEO Paolo Ardoino noted that as digital assets grow in importance to the global economy, market demand for financial instruments balancing long-term holdings and capital flexibility continues to rise. In recent years, Tether has leveraged profits from USDT to expand its business footprint, now holding approximately 140 tons of physical gold, investing in precious metals trading platform Gold.com, and partnering with crypto finance firm Antalpha to advance XAUT’s applications in lending and physical redemption. Additionally, Tether has expanded into multiple sectors including Bitcoin mining, renewable energy, AI infrastructure, and computing power.