What is Tether Gold (XAUt)?

Deep Dive

1. Purpose & Value Proposition

XAUt addresses traditional gold ownership challenges like storage costs, divisibility limits, and geographic constraints. By tokenizing gold on blockchain, Tether enables instant global transfers, fractional investing, and integration into DeFi protocols.

The token acts as a hedge against inflation and market volatility, appealing to investors seeking exposure to gold without physical logistics.

2. Technology & Architecture

Built as an ERC-20 token on Ethereum, XAUt leverages blockchain for transparency and auditability. Reserves are verified through public attestations, with gold bars identifiable via serial numbers.

In 2025, Tether launched XAUt0, an omnichain version using LayerZero’s protocol to enable seamless transfers across 40+ blockchains, including TON (Telegram Open Network). This enhances liquidity and accessibility for retail and institutional users.

3. Key Differentiators

• Tether’s credibility: Backed by the same team behind USDT, the largest stablecoin.
• No custody fees: Unlike physical gold storage, XAUt incurs minimal costs beyond a 0.25% redemption fee.
• Regulatory compliance: Operates under Swiss custodial law, with audits reinforcing trust in reserves.

Conclusion

Tether Gold merges millennia-old value preservation with modern blockchain efficiency, offering programmable, borderless access to gold. As tokenized assets gain traction, will XAUt’s omnichain evolution solidify gold’s role in decentralized finance?