Tether Gold (XAUT): The Digital Token Backed by Physical Gold

Tether Gold (XAUT) is a digital asset that tokenizes physical gold ownership, functioning as a gold-backed stablecoin. Each XAUT token represents ownership of one troy ounce of physical gold that meets the London Good Delivery standard, combining gold's historical value preservation with blockchain technology's efficiency.

Launch and Executive Vision

The token was officially launched on February 23, 2020 by TG Commodities Limited, a partner of the stablecoin issuer Tether. Paul Ardoino, Tether's Chief Technology Officer, explained the product's rationale, stating it offers "the inherent benefits of gold as a store of value, as well as other desirable features from tokenization." This positions XAUT at the intersection of traditional commodity investment and modern digital asset utility.

Core Proposition: Tether Gold is designed for investors seeking exposure to gold's stability while utilizing the transferability and programmability of a blockchain-based token.

Direct Ownership and Asset Transparency

Unlike synthetic or derivative products, each XAUT token provides direct, indivisible ownership rights to a specific physical gold bar held in secure vaults. The underlying asset for each token is identifiable and verifiable through unique characteristics:

Unique Serial Number
Documented Purity (fineness)
Exact Weight

Token holders can independently verify the details of their allocated gold bar at any time through a dedicated online lookup service, providing an unprecedented level of transparency for a commodity-backed asset.

Blockchain Utility and Redemption Process

As an ERC-20 token on the Ethereum blockchain, XAUT inherits the ecosystem's liquidity and infrastructure. It can be seamlessly transferred, traded on supported exchanges, or integrated into DeFi applications, offering global access and 24/7 market participation.

A defining feature is the ability for verified holders to redeem tokens for physical gold delivery. The redemption process requires:

Completion of TG Commodities Ltd's identity verification (KYC/AML).
Ownership of the minimum required amount of XAUT tokens.

This direct redeemability creates a tangible link between the digital token and the physical commodity, underpinning its value proposition.

Technological Bridge: Tether Gold effectively bridges centuries-old commodity markets with decentralized finance, enabling gold to function as a highly liquid, programmable, and transparent digital asset without sacrificing its physical backing.

Informational Purpose Notice: This overview describes the structure and mechanics of the Tether Gold (XAUT) token for educational purposes. It is not financial, legal, or investment advice. Commodities and digital assets involve significant risk, including price volatility and custody considerations. Potential investors should conduct thorough independent research, understand the redemption terms and associated fees, and consult with qualified professionals before making any investment decisions.