Overview
Tether Gold (XAUt) is a token issued by Tether, the company behind USDT, launched in January 2020. Each XAUt represents one troy ounce of physical gold held in vaults in Switzerland.
Gold rose to record highs in early 2026, above $5,000 an ounce, and XAUt grew fast. Its reserves rose about 36% in the first quarter alone, to roughly 708,000 ounces (about 22 tonnes). In October 2026, XAUt’s market value was about $3.25 billion.
How it works
- When you buy XAUt, Tether allocates gold from specific bars to back it; you can look up which bar your tokens correspond to.
- XAUt can be traded on exchanges and moved between wallets like any token, mainly on Ethereum.
- Holders can redeem for physical gold, but only in full bars (about 430 ounces, roughly $1.7 million) delivered in Switzerland, or sell XAUt for cash.
- Tether doesn’t charge storage fees for holding XAUt.
Tether itself holds well over 100 tonnes of gold across its reserves, making it one of the largest private gold holders.
The XAUt token
| XAUt at a glance | |
|---|---|
| Backing | 1 troy ounce of gold per token |
| Price (29 Oct 2026) | about $4,018 (follows gold) |
| All-time high | about $5,505 (January 2026) |
| Market cap | about $3.25 billion (#33) |
Risks
- Trust in Tether. You rely on Tether actually holding and safekeeping the gold, and on its reports.
- Redemption limits. Small holders can’t realistically get physical gold; they rely on selling the token.
- Gold price. XAUt goes down when gold does: gold fell about 14% in the second quarter of 2026.
- Regulation. Gold tokens are less regulated than gold ETFs in most countries.
XAUt vs. the competition
| Tether Gold (XAUt) | PAX Gold (PAXG) | Gold ETF (e.g. GLD) | |
|---|---|---|---|
| Issuer | Tether | Paxos (NY regulated) | Asset manager |
| Storage | Swiss vaults | London vaults | Vaults (varies) |
| Trade 24/7 on-chain | Yes | Yes | No (market hours) |
| Regulation | Light | Stronger | Strong |
Our verdict
XAUt is a simple, popular way to own gold on a blockchain, with real bars behind it and no storage fees. For crypto users who want gold exposure without leaving the crypto world, it is convenient.
But you take on Tether’s issuer risk, and it is less regulated than a traditional gold ETF. XAUt is a gold investment with issuer risk: consider how much you want to rely on one company.
This review is for information only and is not financial advice.