Tether has partnered with crypto lender Ledn to launch gold-backed loans using its XAUT tokenized gold product, allowing holders to borrow against physical bullion without liquidating their positions, according to a CoinDesk report published June 27.
Ledn has added XAUT to its platform alongside BTC and USDT, with gold-backed loans denominated in Tether’s stablecoins expected to go live before the end of 2026. Specific terms — including loan-to-value ratios, interest rates, and minimum borrowing amounts — have not been disclosed. The product will not be available to Canadian or EU residents at launch. Client collateral will be held on a 1:1 basis and will not be lent out or used to generate yield, Ledn said, in line with its existing bitcoin-backed lending model.
Each XAUT token represents one troy ounce of physical gold stored in Swiss vaults. Tether reports holding approximately 140 metric tons of physical bullion, with a total reserve value of roughly $23 billion — placing it among the world’s largest corporate gold holders. The token was trading near $4,070 per unit at the time of reporting, tracking spot gold prices.
The partnership extends Tether’s existing gold strategy. The company invested in precious metals marketplace Gold.com and previously partnered with crypto financing firm Antalpha on XAUT lending and physical redemption. It also recently wound down its Alloy platform and the gold-backed aUSDT stablecoin — a product with a market cap of just $1.27 million at closure — effectively consolidating resources around the core XAUT token. Existing aUSDT users have until September 17, 2026 to redeem holdings.
“As digital assets become an increasingly important part of the global economy, demand is growing for solutions that combine long-term ownership with financial flexibility,” Tether CEO Paolo Ardoino said in a statement, without providing further specifics on launch timing.
The move is part of Tether’s broader pivot beyond stablecoin issuance. The company has deployed USDT profits into bitcoin mining, renewable energy projects, and AI infrastructure — including a stake in Northern Data — as it repositions itself as a diversified technology and financial infrastructure firm.
Gold-backed lending has historically been the domain of central banks, major financial institutions, and bullion dealers. By tokenizing physical gold and integrating it into crypto credit markets, Tether and Ledn are targeting a structural gap: holders seeking liquidity without triggering a taxable sale or disrupting a long-term position. Whether institutional demand for XAUT as collateral materializes at meaningful scale will depend on the final product terms and Ledn’s ability to attract gold holders outside its existing bitcoin-lending user base.
