Tether Expands Gold-Backed Token Use for Collateralized Loans

Tether Gold (XAUT) is being used as collateral for loans by crypto lending platform Ledn, marking an expansion into digital gold-collateralized lending. Tether said it issues XAUT based on about $23 billion in holdings and 140 tons of physical gold, offering both long-term holding and liquidity.

Tether is also broadening its investment scope beyond USDT-driven profits into XAUT lending and physical redemption, as well as Bitcoin mining, renewable energy, and artificial intelligence infrastructure. The company holds about $23 billion in gold and issues XAUT based on those holdings.

Ledn will custody Tether Gold on a one-to-one basis, the same way it handles Bitcoin-backed loans. Ledn CEO Paolo Ardoino said demand is increasing for solutions that offer both long-term holding and financial flexibility as digital assets take on a bigger role in the global economy.