Tether is expanding the use of its gold-backed token, Tether Gold (XAUT), by bringing it to crypto lending platform Ledn, as the stablecoin issuer looks to turn one of the world's largest privately held gold reserves into more active digital collateral. Ledn confirmed it will add support for XAUT alongside Bitcoin and USDT, with borrowing against XAUT expected to go live later in 2026.
XAUT is backed by physical bullion, each token representing one troy ounce of gold stored in Swiss vaults. Tether holds approximately $23 billion worth of physical gold backing the product, a substantial asset pool that gives the company a way to monetize reserves beyond passive token issuance. The integration fits into Tether’s broader effort to use profits from its USDT stablecoin to diversify into wider financial infrastructure.
The lending structure mirrors Ledn’s existing bitcoin-backed model: client collateral is held on a 1:1 basis and is not lent out or used to generate yield. This stands in contrast to the risky rehypothecation practices that contributed to crypto lending failures in 2022. For borrowers, the main benefit is access to cash or stablecoin liquidity while maintaining exposure to gold.
“As digital assets become an increasingly important part of the global economy, demand is growing for solutions that combine long-term ownership with financial flexibility,” Tether CEO Paolo Ardoino said in a statement. By bringing XAUT into collateral markets, Tether positions itself as more than a stablecoin issuer, extending its influence across the financial infrastructure that connects crypto markets with traditional stores of value.
The move could elevate tokenized gold’s utility, a category that has struggled to scale daily usage. If borrowing against XAUT gains traction, it may turn the token into a practical bridge between gold’s institutional familiarity and the speed of crypto lending, while encouraging holders to keep the asset active rather than simply holding it as a digital claim.
At the time of the announcement, XAUT traded at $4,070.34 per token. The partnership follows Tether’s investments in precious metals marketplace Gold.com and a collaboration with crypto financing firm Antalpha to expand XAUT lending and physical redemption.
