What Tether Gold Brings to the Gold and Crypto Markets
Tether Gold (XAUT) is a cryptocurrency backed by gold that is released by TG Commodities Limited, the company behind the stablecoin Tether. One XAUT token holds the value of one troy ounce of gold. Tether Gold is a way of holding gold in a digital form since one can use the cryptocurrency for transactions without having to store any bullion.
| Feature | Detail |
|---|---|
| Launched | 2020 |
| Issued by | TG Commodities Limited |
| Blockchains | Ethereum (ERC-20), Tron (TRC-20), BNB Chain |
| Main utility | Digital ownership of physical gold, with each token representing one troy ounce |
| Supply mechanism | Backed one-to-one by allocated gold reserves, tokens are minted as gold is held and removed from supply on redemption |
How XAUT Stays Tied to Vaulted Bullion
The theory underlying tokenized gold is simple: for each token, there is an ounce of equivalent gold in the reserve of TG Commodities.
- The Reserves: The Tether Gold reserves are LBMA Good Delivery gold bars stored securely in a vault in Switzerland.
- Transparency: Holders can look up the specific bar linked to their tokens.
- Redemption: Eligible users may redeem XAUT for gold through physical delivery or cash settlement.
Note
This is subject to a strict minimum requirement of 430 XAUT which is equivalent to one full standard gold bar.
Tether Gold Price and Where the Token Trades
As each token represents one ounce of gold, the value of Tether Gold is pegged to the spot price of gold. Hence, the XAUT real-time price is driven by the metal markets and not the usual cryptocurrency price dynamics.
- XAUT to USD Rate: ~$4,150 to $4,300
- Market Cap: $2.6 billion to $3 billion
- Circulating Supply: ~612,000 to 700,000 tokens
- 24-Hour Trading Volume: $140 million to $165 million
- All-Time High: ~$5,597 (January 2026)
Where to Buy: Exchanges such as Kraken, Bitfinex, and Bybit have listed XAUT, though availability varies by region. The most active trading pair is usually XAUT/USDT.
XAUT Compared With Owning Physical Gold
The advantage of investing in Tether Gold over purchasing physical gold is its convenience; it can be transferred and subdivided without any need for shipping, storing, and insuring, although holding gold comes with zero counterparty and smart contract risks. Those who want to invest in Tether Gold can purchase XAUT using a market order for instant execution or a limit order at a specific price or by dollar-cost averaging.
Any XAUT price forecast should be taken lightly, as the token is backed by gold and the general market environment, which is unpredictable. It is always wise to diversify investments to minimize losses, and the rule of thumb is to never invest more than one is willing to lose.
Practical Checks Before Holding XAUT
The selection of the appropriate wallet for Tether Gold is dependent on how one intends to use it, and one can choose whether to use the exchange wallet or the ERC-20 self-custody wallet depending on whether one wants control of the private keys. One needs to take into account the following considerations: liquidity, security record, legality, and the duration of operation of the exchange.
FAQs About Tether Gold
What does Tether Gold (XAUT) represent and where is the gold held?
One token represents one troy ounce of gold kept in physical form by TG Commodities in the shape of an LBMA Good Delivery Bar, which is kept in a vault in Switzerland. It is possible for the owners to see the exact bar that represents the tokens they own.
How is the price of Tether Gold calculated?
Its price mirrors that of one troy ounce of gold, meaning that the token tends to increase and decrease in value along with the precious metal and not with the general state of mind in the crypto world.
Am I able to exchange my XAUT tokens for physical gold?
Those who qualify will be able to exchange their XAUT for physical gold or cash based on the requirements set by the issuer.