Overview
- Tether has integrated its tokenized gold XAUT onto Ledn’s platform so users can trade and hold the tokens while the companies develop a lending product.
- Tether says roughly $23 billion of physical bullion backs XAUT, with each token representing one fine troy ounce and about 707,747 ounces currently linked to tokens in circulation.
- Ledn plans to offer gold-backed loans denominated in Tether stablecoins (USDT and the new USAT) later in 2026, though the lending product will exclude residents of Canada and the European Union.
- Ledn says it will keep client collateral 1:1 and will not rehypothecate or lend out deposited gold, a policy intended to reduce risk after high-profile crypto lending failures in 2022.
- The move aims to unlock liquidity by letting holders borrow against tokenized bullion without selling physical gold and could push traditional bullion lending into crypto-native workflows while raising custody and regulatory questions.