What is Tether Gold (XAUt)?

Tether Gold, known by the ticker XAUt, is a crypto token backed by physical gold. Each full token represents one troy fine ounce of gold on a London Good Delivery bar, the standard large bar traded in the wholesale gold market. It is made by Tether, the company behind the USDT stablecoin, and can be sent to any compatible blockchain address like other tokens.

How is Tether Gold backed?

According to Tether's report for the second quarter of 2026, XAUt is issued by TG Commodities, S.A. de C.V., which is registered under El Salvador's digital asset issuance law. As of June 30, 2026, Tether said:

• 612,823.66 XAUt had been sold to customers,
• the reserve held 707,747.139 fine troy ounces of gold, about 22 metric tonnes,
• the gold was vaulted in Switzerland, including 1,759 London Good Delivery bars plus smaller bars.

Tether says each bar has its own serial number, purity and weight, and each token is backed by at least one ounce. The report links to an independent assurance opinion on the reserve as of that date.

Holders still rely on the issuer. They cannot inspect the vault themselves and depend on Tether's reporting and outside checks, a trust question covered in our guide to proof of reserves. XAUt is a form of tokenization, putting a claim on a real-world asset onto a blockchain.

Can you redeem XAUt for gold?

Yes, but not in small amounts. Data provider RWA.xyz lists the terms as a minimum of 430 XAUt for physical delivery plus a 0.25% fee and other charges, with delivery arranged to an address in Switzerland. Cash settlement is also listed as an option. Buying directly from the issuer has its own minimum and a verification deposit.

Most holders never redeem. They buy and sell XAUt on crypto exchanges instead. RWA.xyz lists the token on several networks as of October 2026, including Ethereum, BNB Chain and Arbitrum.

Why is Tether buying gold?

Gold plays two roles for Tether. It backs XAUt, and it also forms part of the reserves behind USDT, as our guide to USDT vs USDC notes.

In January 2026, Reuters reported that Tether held about 130 metric tons of physical gold in Switzerland backing its products and had been buying roughly two tons a week. Chief executive Paolo Ardoino said the company began buying gold in 2020, during the pandemic, and kept going as geopolitical tensions grew. He said Tether aimed to hold 10% to 15% of its investment portfolio in gold. Tether's August 2026 report said Tether International bought about 27.1 tonnes in the first half of 2026.

How is XAUt different from a stablecoin?

A dollar stablecoin aims to stay at one dollar. XAUt instead tracks the market value of an ounce of gold, so its dollar value moves up and down with gold. The comparison between bitcoin and gold explains how gold itself behaves as an asset.