Tether is set to launch the XAUT Gold-Backed Loans service, further expanding the tokenization of gold applications

BlockBeats News, June 28th, Tether is actively putting its approximately $23 billion gold reserves to work, expanding the use case of Tether Gold (XAUT) through a collaboration with the crypto lending platform Ledn. Ledn has announced its support for XAUT and plans to launch XAUT collateralized lending services later this year, alongside its existing Bitcoin and USDT collateralized lending products.

Reportedly, each XAUT token is backed by one troy ounce of physical gold held in a Swiss vault. Tether has stated that its approximately $23 billion gold reserves provide 1:1 backing for XAUT. In the future, users will be able to gain liquidity by collateralizing XAUT without needing to sell their gold assets, similar to the Bitcoin collateralized lending model.

Tether CEO Paolo Ardoino stated that as the significance of digital assets in the global economy continues to rise, there is a growing market demand for financial instruments that balance long-term holding with liquidity.

In recent years, Tether has consistently expanded its business footprint using the profits generated from USDT. Currently, it holds approximately 140 tons of physical gold and has invested in the precious metals trading platform Gold.com. It has partnered with the crypto financing company Antalpha to advance the application of XAUT in the lending and physical redemption fields. Additionally, Tether has made strategic moves in various areas such as Bitcoin mining, renewable energy, AI infrastructure, and computing power.