Tether puts $23B gold stockpile to use with bullion-backed loans via Ledn
Tether is expanding the utility of its $23 billion gold reserves by bringing its tokenized product Tether Gold (XAUT) to crypto lender Ledn, enabling holders to borrow against their bullion later this year. The move mirrors Ledn's existing bitcoin-backed lending model, allowing clients to unlock liquidity without selling the underlying asset. Gold-backed lending is traditionally the domain of central banks and major institutions, but Tether and Ledn argue that tokenization makes gold function more like digital collateral. Client collateral will be held 1:1 and not lent out or used for yield, distinguishing it from failed crypto lenders of 2022. This is part of Tether's broader strategy to diversify beyond its stablecoin business into finance, energy, and AI, leveraging profits from USDT. Tether has accumulated roughly 140 metric tons of physical gold, making it one of the largest corporate gold holders globally.
Key facts
- Tether partners with Ledn to offer gold-backed loans using XAUT tokens.
- Each XAUT token represents one troy ounce of gold stored in Swiss vaults.
- Collateral will be held 1:1, not lent out or used for yield generation.
- Tether holds approximately 140 metric tons of physical gold.
- Move is part of Tether's expansion beyond stablecoins into finance and tech.