Tether and Ledn unveil gold-backed loans with XAUT

Tether and Ledn will offer gold-backed loans using XAUT tokens, letting holders borrow against tokenized gold. The service, backed by $23B in gold, is expected to launch later this year.

Tether is set to expand the utility of its $23 billion gold reserve by partnering with crypto lender Ledn to introduce gold-backed loans using Tether Gold (XAUT) tokens. Each XAUT token represents one troy ounce of gold securely stored in Swiss vaults. This new lending product, expected to launch later this year, will enable XAUT holders to borrow against their tokenized gold without needing to sell the underlying asset. The model mirrors Ledn’s existing bitcoin-backed loans, with client collateral held on a strict 1:1 basis and not used for yield generation or further lending. The initiative aims to make gold-backed lending more accessible within the crypto ecosystem, moving beyond traditional markets dominated by central banks and financial institutions. The product will not be available to residents of Canada or the EU. Ledn will add XAUT to its platform alongside Bitcoin and USDT, expanding collateral options for borrowers.