Tether Gold

Tether Gold (XAUT) is an ERC-20 token issued by Tether on the Ethereum blockchain, with each token backed 1:1 by physical gold stored in professional vault facilities. The token enables fractional ownership and transfer of allocated gold without requiring direct custody of physical bullion. Redemption mechanics allow holders to convert XAUT back to allocated gold or fiat equivalent, creating a bridge between crypto markets and traditional commodity ownership.

XAUT functions as a tradeable proxy for gold exposure within DeFi and centralized exchange ecosystems, with liquidity concentrated on platforms like Uniswap and major exchanges. Traders monitor it as a volatility hedge and correlation play—gold's traditional inverse relationship to equity risk often translates to XAUT behavior during market dislocations. The token's supply is directly tied to physical gold backing rather than algorithmic issuance, making supply mechanics transparent and redemption risk minimal. Its narrow trading spread relative to spot gold prices makes it relevant for basis arbitrage and for participants seeking commodity exposure denominated in blockchain infrastructure rather than fiat rails.