What Is XAUt? Tether Gold Explained

Tether Gold, whose ticker is XAUt, is a digital token issued by TG Commodities, S.A. de C.V. According to the issuer’s current terms, one XAUt represents ownership of one fine troy ounce of gold on a physical bar that meets the London Bullion Market Association’s Good Delivery standard.

XAUt makes that interest in gold transferable on supported blockchains. It can be divided into small units, moved between compatible wallets and traded outside traditional market hours. It also introduces risks that are different from holding a gold bar directly.

Learn about holding and trading XAUt on Ledn. Availability varies by jurisdiction.

For the practical steps, see how to buy XAUt on Ledn.

XAUt is issued by a third party and is not issued or guaranteed by Ledn. Holding or trading it involves gold-price, issuer, custody, operational, blockchain, liquidity and redemption risks.

XAUt in one sentence

Under Tether Gold’s terms, each XAUt token represents ownership of one fine troy ounce of allocated gold associated with a physical bar held for token holders in Switzerland.

How XAUt works

TG Commodities issues XAUt after corresponding physical gold has completed the custodian’s intake process. The issuer states that the bars meet LBMA Good Delivery standards and are held in vault facilities in Switzerland for the benefit of XAUt token holders.

Specific gold bars are associated with addresses holding XAUt. Tether Gold provides an allocation lookup tool intended to show details such as the relevant bar’s serial number, weight and purity.

XAUt is currently available as an ERC-20 token on Ethereum and as a BEP-20 token on BNB Chain. Platform and wallet support varies, so users must verify the correct network before transferring it.

The token is divisible to six decimal places. That makes it possible for trading platforms to support purchases smaller than one ounce even though buying or redeeming directly with the issuer has much larger minimums.

Is XAUt the same as owning physical gold?

No. XAUt is designed to represent ownership linked to allocated physical gold under the issuer’s legal terms, but holding a token is operationally different from personally possessing a bar or coin.

XAUt versus a gold ETF

Both can provide price exposure to gold without requiring the investor to store bullion at home, but their structures differ.

A gold ETF is a regulated investment fund whose shares normally trade through a brokerage account during exchange hours. Its holdings, fees, redemption mechanisms and investor protections depend on the specific fund and jurisdiction. Retail investors usually cannot exchange ordinary ETF shares directly for a physical bar.

XAUt is a transferable token. It can be held in a compatible wallet and moved outside exchange hours, subject to blockchain availability and the receiving platform’s support. Its rights, reserves and redemption process depend on TG Commodities’ terms rather than an ETF prospectus.

Continuous transferability does not guarantee continuous liquidity or execution at the gold spot price. XAUt’s market price may trade above or below the value implied by spot gold, particularly when market liquidity is limited.

Can XAUt be redeemed for physical gold?

Tether Gold provides a physical-redemption process for verified eligible customers, subject to its current terms, fees and minimums.

Redemption generally takes place in full-bar increments. Tether Gold advises that approximately 430 XAUt may be needed to ensure there is enough for a full LBMA bar, whose exact weight can vary. The issuer can arrange secure delivery to an address in Switzerland or attempt to sell the redeemed bars in the Swiss market and send the net US-dollar proceeds.

Fees, identity verification, location restrictions and other conditions apply. Anyone considering redemption should check the issuer’s current Tether Gold FAQ rather than relying on a summary.

What transparency information does Tether Gold publish?

Tether Gold publishes periodic third-party assurance reports covering the gold reserves and tokens in circulation at a specific reporting date. It also provides an on-chain allocation lookup.

These materials can help users understand the reported backing. Their scope is limited to the procedures, entities and point in time described in each report. They are not the same as a full audit of every aspect of the issuer or a guarantee that redemption will always be available on identical terms.

What can eligible clients do with XAUt on Ledn?

Ledn currently supports XAUt in its non-interest-bearing Transaction Account. Eligible clients can:

• deposit and withdraw XAUt on supported networks;
• hold it alongside BTC, USDC, USDT and USAT;
• trade it against BTC and supported stablecoins across Ledn’s integrated pairs.

Ledn quotes a time-limited execution price. Its current trading page describes a 0.5% all-in spread for BTC and XAUt trades, with no separate commission. Minimums and availability vary by jurisdiction.

Ledn has announced XAUt-backed loans as a planned product for later in 2026. They are not currently available and any launch remains subject to product, legal and jurisdictional considerations.

Risks to consider

XAUt combines exposure to the price of gold with additional risks:

• Issuer risk: token-holder rights rely on TG Commodities performing its obligations.
• Custody risk: the physical gold is held through custody arrangements rather than by the token holder personally.
• Blockchain risk: transfers depend on supported networks, smart contracts and correct wallet addresses.
• Market risk: gold and XAUt prices can fall, and the token can deviate from spot gold.
• Liquidity risk: a holder may not always be able to trade the desired amount at the expected price.
• Redemption risk: physical redemption has substantial minimums, fees, verification and location requirements.
• Platform risk: holding XAUt with an exchange or platform adds that provider’s custody and operational risks.

Frequently asked questions

Who issues XAUt?

XAUt is issued by TG Commodities, S.A. de C.V. Ledn does not issue or guarantee the token.

Is one XAUt always worth exactly one ounce of gold?

One XAUt represents one fine troy ounce of gold under the issuer’s terms. Its trading price can nevertheless differ from the spot value of one ounce because of liquidity, spreads and market conditions.

Can I buy a fraction of XAUt?

Yes. The token is divisible to six decimal places, and platforms may permit fractional trades. Platform-specific minimums still apply.

Can I withdraw XAUt from Ledn?

Eligible users can withdraw XAUt from a Ledn Transaction Account to a compatible supported-network address. Network fees, limits and jurisdictional restrictions may apply.

Are XAUt-backed loans available from Ledn?

Not currently. Ledn has announced them as a planned product for later in 2026, subject to development, legal and product considerations.

This article is for general information only and is not financial, investment, tax or legal advice. Terms, reserve reports, market conditions and product availability may change. Review current issuer and platform documentation before acting.