Tether Gold

Gold

Partner

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  XAUT-Backed Gold Loans — Source: CoinGape
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<ul>
 <li>Tether and Ledn partner to launch Tether Gold (XAUT)-backed loans allowing users to use XAUT as collateral to get loans.</li>
 <li>XAUT-backed loans will launch later this year, following Ledn's Bitcoin-backed lending model.</li>
 <li>The tokenized gold market has grown to $4.64 billion, with Tether Gold controlling nearly 54% of the sector.</li>
</ul>
<p><strong>Tether XAUT Loans:-</strong> In a major update for XAUT, Tether has announced a partnership with crypto lending platform Ledn to introduce loans backed by Tether Gold (XAUT).</p>
<p>The partnership will allow users to borrow against tokenized gold instead of selling their holdings.</p>
<p>Alongside the launch of XAUT-backed loans, Ledn has also enabled users to hold, trade, and swap Bitcoin, Tether Gold (XAUT), USDT, and USA₮ directly on its platform. Users can now receive and repay loans in USDT and USA₮, simplifying the borrowing process.</p>
<p>The move extends Tether’s tokenized gold strategy beyond simply holding bullion. It opens the door for XAUT to be used as productive collateral within crypto lending. Here’s how</p>
<blockquote class="twitter-tweet">
 <p>Tether Gold XAUT is available on Ledn ❤️ <a href="https://t.co/3fHaQxuxJ9" rel="noopener noreferrer nofollow">https://t.co/3fHaQxuxJ9</a></p>
 <p>— Paolo Ardoino 🤖 (@paoloardoino) <a href="https://x.com/paoloardoino/status/2068248769624240364?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 20, 2026</a></p>
</blockquote>
<h2 id="what-are-xaut-backed-loans">What Are XAUT-Backed Loans?</h2>
<p>As per <a href="https://www.ledn.io/post/hard-assets" rel="noopener noreferrer nofollow">Ledn’s official blog</a>, XAUT-backed loans allow holders of Tether Gold (XAUT) to borrow funds without selling their tokenized gold. Instead of liquidating their holdings, users can pledge XAUT as collateral. They can then receive a loan while maintaining exposure to movements in gold prices.</p>
<p>According to Tether, the company has issued more than 8 million XAUT tokens, thus all the users of these XAUT tokens can avail loan at Ledn. &nbsp;The move also comes shortly after <a href="https://coingape.com/tether-ausdt-to-shut-down-as-company-ends-support-for-alloy/" rel="noopener noreferrer nofollow">Tether decided to win down aUSDT</a>, a dollar-pegged Stablecoin which was backed by Tether Gold (XAUT).</p>
<p>The launch significantly expands the utility of XAUT, which is backed 1:1 by one troy ounce of physical London Good Delivery gold stored in Swiss vaults.</p>
<p><a href="https://gold.tether.to/reports?" rel="noopener noreferrer nofollow">Tether’s latest attestation</a> shows the company holds nearly 140 metric tonnes of physical gold, worth approximately $23 billion at current market prices. The reserve makes Tether one of the largest non-sovereign holders of gold globally.</p>
<figure><img src="https://coingape.com/wp-content/uploads/2026/06/fe172439-0145-4192-8e4e-b9a6cdb97bf3.jpg" alt="XAUT backed loans" width="701" height="545">
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  XAUT backed loans
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<p>The move also includes tokenized gold as a key asset in the rapidly growing crypto-backed lending markets. However, XAUT-backed loans are not launched yet. They’re set to go live later this year.</p>
<h3 id="how-do-tether-gold-xaut-loans-work">How Do Tether Gold (XAUT) Loans Work?</h3>
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       <p>&nbsp;Ledn said it will apply the same custody and risk management framework to XAUT-backed loans as with its Bitcoin-backed loans. It will never use collateral for lent out or used to generate yield.</p>
       <p>As part of process of getting a XAUT-backed laons, users deposit their XAUT tokens on Ledn’s lending platform as collateral. Based on the value of those tokens, Ledn gives them a loan. The platform keeps checking the loan-to-value (LTV) ratio to manage risk.</p>
       <p>If gold prices fall and the collateral loses value, users may need to add more XAUT or repay part of the loan. If they meet the collateral requirements, they keep ownership of their tokenized gold. They can get it back after repaying the loan in full.</p>
       <figure class="wp-caption aligncenter"><img src="https://cdn.prod.website-files.com/67e57166f96cd074b599cef1/6a32c09ae160fb51745aac71_Blog%20inline%20%E2%80%94%20XAUt%20explainer.jpg" alt="Tether Ledn XAUT Loans" width="653" height="399">
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         Soirce: Ledn Official blog
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       <p>The move builds on Ledn’s Bitcoin-backed lending business, which has originated more than <strong>$10 billion in loans since 2018</strong>. The main difference is that the collateral is backed by physical gold. This lets investors get cash without selling their gold-backed holdings.</p>
       <p>It also allows them to stay invested in Gold, the asset often seen as the best hedge against inflation and economic uncertainty.</p>
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<h3 id="why-did-tether-partner-with-ledn">Why Did Tether Partner With Ledn?</h3>
<p>The Ledn partnership enables Tether to offer its XAUT-backed loans and transform XAUT from a passive store of value into a yield-generating financial asset.</p>
<p>Rather than simply holding tokenized gold, investors can now use it as collateral to unlock liquidity. This broadens the real-world utility of XAUT.</p>
<p>The timing is also notable. Spot gold has surged more than 25% year-to-date, currently&nbsp;trading at around $4,050 per ounce after a strong rally earlier this year.</p>
<p>The launch also comes at a time when tokenized gold is gaining traction. The tokenized gold market is now worth around $4.64 billion, with Tether Gold (XAUT) holding a 53.9% market share. This makes XAUT the largest tokenized gold product with only <a href="https://coingape.com/block-of-fame/pulse/whos-challenging-tether-in-tokenized-gold-inside-a-growing-market/" rel="noopener noreferrer nofollow">Paxos challenging Tether in the tokenized gold market.</a></p>
<p>And for Ledn, adding XAUT diversifies its lending business that has been focused on Bitcoin-backed loans till now.</p>
<p>&nbsp;</p>
<p><a href="https://coingape.com/author/sneha-agrawal/" rel="noopener noreferrer nofollow">About the author</a></p>
<p><a href="https://coingape.com/block-of-fame/pulse/tether-partners-with-ledn-to-launch-xaut-backed-gold-loans/" rel="noopener noreferrer nofollow">Tether Partners With Ledn to Launch XAUT-Backed Gold Loans</a> originally appeared on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a></p>

Tether Partners With Ledn to Launch XAUT-Backed Gold Loans

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