Tether Brings Gold-Backed Lending to Crypto Market with Ledn

Tether and Ledn Partner to Bring Gold-Backed Lending to Crypto Market

The partnership between Tether, the issuer of the USDT stablecoin, and Ledn, a cryptocurrency lending platform, aims to bring gold-backed lending to the crypto market. This new product will allow holders of Tether Gold (XAUT) to use their holdings as collateral for loans, giving them access to liquidity without having to sell off their physical gold assets.

The structure of this product mirrors Ledn's handling of bitcoin-backed lending, where client collateral is held on a 1:1 basis and not lent out or used to generate yield. Each XAUT token represents one troy ounce of physical gold stored in Swiss vaults, according to Tether.

Tether CEO Paolo Ardoino said that the partnership is betting on bringing the concept of gold-backed lending on-chain, giving holders access to financial flexibility while maintaining long-term ownership of their assets.