What is Tether Gold (XAUT)? All You Need to Know About Digital Gold!

In today's world, choosing the right asset to invest in has become increasingly challenging. However, gold has always been a reliable, profitable, and nearly unrivaled investment option worldwide. Now, with blockchain technology, investing in gold has entered a new and exciting phase. As an example of blockchain-based digital gold, this article explores Tether Gold (XAUT)—its features, advantages, and disadvantages. We will also compare investing in this token with traditional physical gold to help you make an informed decision.

What is Tether Gold (XAUT)?

Tether Gold (XAUT) is a digital asset structured as a stablecoin and pegged to the value of gold.

Each XAUT token represents indirect ownership of one troy ounce of physical gold, securely stored in vaults. This digital asset combines the benefits of physical gold with the convenience and liquidity of digital assets, allowing holders to trade globally while avoiding the traditional challenges of storing gold.

Tether Gold was created by Tether, the company behind the well-known USDT stablecoin. Like USDT, XAUT is also a stablecoin, but instead of being pegged to the US dollar, it is backed by physical gold. Launched in 2020, its goal is to make gold—a traditional, valuable, and globally accepted asset—more accessible and convenient for both individual and institutional investors.

The XAUT digital gold token is fully backed by real gold bars, securely stored in a Swiss vault under Tether's management. Unlike other digital assets that experience high volatility, Tether Gold provides a stable and reliable store of value, as each token is equivalent to one ounce of gold.

Key Information About Tether Gold is mentioned in the table below:

Name	Tether Gold
Symbol	XAUT
Maximum Supply	No limit
Backing Asset	Physical gold

 

Features of Tether Gold (XAUT)

As previously mentioned, Tether Gold (XAUT) is a digital asset backed by physical gold, providing a blockchain-based method for buying, holding, and transferring gold ownership.

Understanding its features can help you understand how this asset works:

• Digital Ownership: Each XAUT token represents indirect ownership of one troy ounce of gold stored in secure vaults in Switzerland. The gold is identifiable by a unique serial number, purity, weight, and other details, all accessible to token holders.
• Token Transferability: XAUT tokens can be transferred to any blockchain address, enabling easy movement and exchange of digital gold ownership.
•  Redeemability: Holders can redeem their XAUT tokens for physical gold, which can be delivered to any address in Switzerland, or choose to sell gold in the Swiss market through Tether Gold.
• Divisibility: XAUT tokens are divisible up to six decimal places, increasing accessibility and flexibility for investors. This means anyone can invest in gold, regardless of the amount, by purchasing these tokens.
• Real-Time Reallocation: When tokens are transferred, the associated physical gold is reallocated in real time, ensuring that each token consistently represents a portion of a specific gold bar.
• Security: Tokens are stored in digital wallets and secured with multiple protective measures, including vault keys for Swiss gold, maintained by Tether.
• Buying and Selling: XAUT tokens can be traded on various cryptocurrency exchanges at any time of day and in any quantity, offering flexibility and convenience for investors.

Pros and Cons of Investing in Tether Gold (XAUT)

Before investing in Tether Gold (XAUT), it’s important to understand its advantages and potential risks.

Some of the most important advantages of Tether Gold (XAUT) are:

1. Indivisible Ownership Rights. XAUT tokens represent undivided ownership of specific gold bars, identifiable by a unique serial number, purity, and weight. Holders can easily verify details of the gold allocated to their token.
2.  Combining Physical and Digital Asset Benefits. By holding Tether Gold, investors enjoy the security and value of gold ownership while avoiding the challenges of storing and safeguarding physical gold.
3. 24/7 Market Availability. Unlike traditional gold markets, which operate on fixed schedules, Tether Gold tokens can be traded 24/7 on cryptocurrency exchanges, even when traditional markets are closed.
4. Redemption Options. XAUT holders have the flexibility to redeem their tokens for physical gold or exchange them for fiat currencies like the US dollar.

There are some potential risks and drawbacks that worth mentioning:

1. Trust in the Issuer. Tether Gold is issued by Tether Ltd., and its value depends on the company's claim that each token is backed by real gold reserves. If these claims were ever disputed, XAUT’s price could collapse. Investors comfortable with buying Tether and USDT’s trust model may not see this as a major concern.
2. Regulatory Risks. Changes in laws or regulations—especially in the country where the gold is stored—could impact the availability or price of XAUT. Global regulations on gold trading may also affect its liquidity and value.
3. Gold Price Volatility. Although gold is considered a stable store of value, it can experience price fluctuations during times of war, economic crises, or pandemics, which may affect the value of Tether Gold.

How to Buy, Sell, and Store Tether Gold (XAUT)

To buy and sell Tether Gold (XAUT), you need to use a cryptocurrency exchange. After registering on an exchange, you can fund your account with any currency or asset of your choice and proceed to buy Tether Gold.

The selling process follows the same steps: transfer your XAUT tokens to your exchange account and convert them into USDT or fiat currencies.

You have two options for storing your XAUT tokens. Keep them in the exchange wallet where you bought them or Transfer them to a personal wallet for added security.

Best Wallets for Storing Tether Gold (XAUT) are:

• Ledger Hardware Wallet (for maximum security)
• Trust Wallet (a popular software wallet)

 Which is Better: Physical Gold or Digital Gold?

Let's compare physical gold and Tether Gold (XAUT) based on key features in the table below:

Feature	Physical Gold	Tether Gold (XAUT)
Backing	Directly backed by physical gold	1 troy ounce of physical gold
Blockchain Network	Not applicable	Ethereum & Tron
Liquidity	High in physical markets	High in digital exchanges
Fees & Costs	High (depending on storage method)	Low (depends on blockchain network congestion)
Trading Hours	Limited to traditional market hours	24/7 trading availability
Storage	Banks, safes, or vaults	Digital wallets

Looking at the table above, it's clear that Tether Gold (XAUT) bridges the gap between blockchain technology and traditional gold investment. It allows investors to benefit from gold’s stable value while enjoying the security, convenience, and liquidity of digital assets.

For those seeking a simple, secure, and highly liquid way to invest in gold with 24/7 market access, Tether Gold (XAUT) is an excellent option.