Tether expands gold reserve use as Ledn supports tokenized gold XAUT
RWA Signal Insight
CommoditiesTether and Ledn have announced a strategic partnership to integrate Tether Gold (XAUT) into the Ledn lending platform, marking a significant expansion for commodity-backed assets in decentralized finance. Announced on June 18, the collaboration allows users to trade and hold XAUT, with plans to introduce gold-backed loans denominated in USDT and the new USAT stablecoin by 2026. Each XAUT token is backed by one fine troy ounce of physical gold, with 707,747 ounces currently supporting the circulating supply. This integration is notable for its conservative approach, as Ledn maintains a strict 1:1 collateral holding policy that prohibits rehypothecation of user deposits. By enabling borrowing against gold without requiring the liquidation of underlying assets, the partnership offers investors increased financial flexibility. The move highlights Tether's growing ecosystem, as its XAUT market cap has recently surpassed $3 billion, solidifying its position as a dominant commodity-backed token. This development represents a broader effort to rebuild trust in the crypto lending sector following the industry-wide failures of 2022.
Key points
- Ledn integrates Tether Gold (XAUT) for trading and holding, with loans launching in 2026.
- XAUT market capitalization has officially surpassed the $3 billion milestone.
- Ledn enforces a 1:1 collateral policy, explicitly prohibiting the rehypothecation of user assets.
- Tether manages a physical gold stockpile valued at approximately $23 billion.
Background
Tether Gold (XAUT) is a digital asset where each token represents ownership of one fine troy ounce of physical gold stored in Swiss vaults. Ledn is a digital asset lending platform that provides financial services, including savings accounts and loans, primarily focused on Bitcoin and stablecoin collateralization.