Tether Gold xaut
What is Tether Gold?
Tether Gold (XAU₮, commonly XAUT) is a gold-backed digital token issued by TG Commodities. Each token represents an undivided specific interest in one fine troy ounce of gold (about 31.1034 g) allocated to a specific London Good Delivery bar. The bar is identified by serial number, weight, and purity, and held by a custodian in a Swiss vault on behalf of XAU₮ holders. XAU₮ makes an ownership interest in vaulted physical gold transferable on supported blockchains and divisible to six decimal places; its value generally follows gold rather than a fixed fiat peg. Tether operates a look-up facility to search bars associated with an on-chain address.
What problem does Tether Gold solve?
Physical gold is expensive to store, difficult to transport, and cumbersome to trade in small quantities. Gold ETFs can provide liquidity but may represent indirect exposure. XAU₮ combines direct exposure to identified vaulted gold with token divisibility, portability, and blockchain transferability. Intended uses include a digitally mobile safe-haven asset, liquid portfolio hedge, and sovereign-neutral gold monetary unit. These benefits do not remove issuer, custodian, legal, market, operational, or redemption risks.
How does Tether Gold work?
AGCL, a Tether Holdings subsidiary, buys gold through brokers and delivers it to the custodian. After custody is confirmed, TG Commodities issues one XAU₮ per fine troy ounce and maintains tokens for primary-market sales. A KYC-verified customer purchases via Tether's site using quoted Swiss gold-market price plus fees, then may hold, transfer, or exchange tokens via supported wallets or secondary venues. Transfers trigger reallocation of physical-gold associations among addresses to minimize bars per address; each token remains associated with gold in a particular bar. Direct redemption is limited to KYC-verified customers and full bars. As bars generally contain about 385–415 fine troy ounces, redeemers generally submit at least 430 XAU₮. They may receive the bar at a chosen Swiss location (paying delivery costs), or request Tether attempt to sell it in the Swiss market and remit USD less applicable fees. Redeemed tokens are removed from circulation.
Key facts
- Name: Tether Gold
- Ticker: XAU₮ (XAUT/XAUt)
- Issuer/customer-facing entity: TG Commodities, S.A. de C.V.; January 2025 RID says it is authorized by El Salvador CNAD as stablecoin issuer and digital-assets service provider
- Backing: one fine troy ounce of gold per token, on a specific LBMA London Good Delivery bar
- Custody: physical reserves held by Swiss custodian in Swiss vault on behalf of token holders; Tether Gold says it does not hold legal title
- Identification: bar(s) searchable by on-chain address; serial number, weight, purity
- Divisibility: as little as 0.000001 fine troy ounces
- Ethereum XAU₮ contract: 0x68749665FF8D2d112Fa859AA293F07A622782F38
- BNB Smart Chain XAU₮ contract: 0x21cAef8A43163Eea865baeE23b9C2E327696A3bf
- Primary access: KYC/AML/sanctions checks; January 2025 RID minimum purchase 50 XAU₮
- Redemption: full bars only; generally at least 430 XAU₮; delivery currently only in Switzerland
- Fees: January 2025 RID states 25 bps purchase and redemption; delivery/other charges may apply and terms can change
- Reserve reporting: RID says quarterly gold-reserve reports with independent auditor reports; circulation updates may be delayed
- Secondary market: exchanges/third-party wallets may support XAU₮, but stated issuer obligations apply to primary-market users
- Launch: January 23, 2020; launch post described Ethereum ERC-20 and Tron TRC-20, while newer RID says Ethereum current and current protocol page lists Ethereum and BNB contracts
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Frequently asked questions
Is XAU₮ backed by physical gold?
Tether's January 2025 RID says each token represents an undivided specific interest in one fine troy ounce on a specific LBMA London Good Delivery bar, held by a Swiss custodian in a vault for token holders. This issuer representation does not remove custody, legal, operational, or market risks.
Can every XAU₮ holder redeem for one ounce?
No. Direct redemption is limited to KYC-verified primary-market customers and full bars, not individual coins or arbitrary one-ounce portions. Since bars generally weigh 385–415 fine troy ounces, Tether generally asks at least 430 XAU₮.
Where is the gold stored?
The RID says reserves are held by a Swiss custodian in a Swiss vault. The custodian is a related party but operates separately from the Tether Group and may use its own or third-party facilities.
How do I redeem XAU₮?
A KYC-verified customer requests redemption and supplies enough tokens for a full allocated bar, generally at least 430 XAU₮. The bar can be delivered to a Swiss location after delivery costs, or the customer can ask Tether to attempt a Swiss-market sale and send USD less fees.
Can I verify which bar backs my tokens?
Tether says holders can enter an on-chain address in its look-up website to identify associated bars, including serial, weight, and purity. Transfers can change allocation because Tether reallocates associations to reduce bars per address.
Is XAU₮ a fixed-price stablecoin?
No. It references gold and is backed by gold, but is not designed to remain at one dollar. Secondary prices can differ from gold value due to liquidity, premiums, discounts, fees, and token or issuer risks.
Can I buy XAU₮ without KYC?
Not directly from Tether Gold. The RID says only KYC-verified customers may purchase or redeem through the website. Secondary venues impose their own restrictions.
What risks should holders understand?
The token depends on issuer, custodian, allocated-gold records, smart contracts, blockchain, and law. Tether may delay/suspend redemption for prohibited use, government direction, litigation/investigation, suspected unauthorized access, fraud, theft, or criminal activity.
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