Key facts
- Tether is launching gold-backed loans through its partnership with crypto lender Ledn.
- The loans will be collateralized by Tether Gold (XAUT), representing physical gold reserves.
- This offering allows holders to borrow against tokenized gold without selling it.
- Ledn will also support Bitcoin and Tether's stablecoin USDT for lending.
Tether is expanding the utility of its substantial gold reserves by enabling its tokenized gold product, Tether Gold (XAUT), to be used for loans through a partnership with crypto lender Ledn. Expected to launch later this year, this initiative will allow holders to borrow against their tokenized gold, which represents physical bullion stored in vaults. This move mirrors Ledn's established model for bitcoin-backed loans and aims to unlock liquidity for gold holders without requiring them to sell their assets. Tether holds approximately $23 billion worth of physical gold backing XAUT, with each token equivalent to one troy ounce. The company has been actively building its gold business, accumulating around 140 metric tons of physical bullion, making it one of the largest corporate gold holders globally. This strategic expansion into gold-backed lending is part of Tether's broader effort to leverage profits from its stablecoin USDT to diversify into various technology and infrastructure sectors, including finance, energy, and AI.