Tether Gold (XAUT) Review (9.5/10⭐)

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Launched in 2020 by TG Commodities Limited, Tether Gold sits inside the broader Tether family that’s best known for USDT. It runs mainly on Ethereum as an ERC-20 token and is also available on Tron as a TRC-20 token. The link to multiple blockchains makes it flexible across wallets and exchanges. What distinguishes it from traditional gold is accessibility. Instead of buying full bars or paying for storage, you can hold a single token or even fractions of one. Trading is available 24 hours a day, 7 days a week, which is something the physical gold market doesn’t offer. The value of each token tracks the global gold price, so investors use it both as a hedge against crypto volatility and as an inflation shield. Adoption has been steady. As of 2025, more than 246,000 tokens were in circulation, all backed by gold sitting in Swiss vaults.

 

A Bit About Tether Gold

Tether Gold is best described as tokenized gold with the infrastructure of crypto. It was introduced by the same group that created USDT, namely Brock Pierce, Reeve Collins, and Craig Sellars. Together they helped bring stablecoins into mainstream trading, and XAUt is their attempt to extend that model to commodities. Each token represents ownership of gold that meets the London Bullion Market Association’s Good Delivery standard. This means the bars are high quality, internationally recognized, and easy to verify. Unlike buying shares in a gold ETF, Tether Gold gives direct ownership of a specific bar. The bar’s weight, purity, and serial number can be checked through Tether’s platform. That traceability has been a key selling point.

Tether have their own pfsysical gold backed stablecoin that can be redeemed in Switzerland.CryptoLists.com

 

XAUt is a digital token pegged one-to-one with real gold. Every token you hold equals one ounce of LBMA-certified gold held in a Swiss vault. The token works like any other crypto: you can send it, trade it, or store it in a wallet. Unlike owning a bar in a vault, you can split a token into tiny fractions, as small as 0.000001 ounces, and still have real exposure to gold. The real strength of Tether Gold is convenience. Gold has always been hard to move. A token solves that. If you want to transfer value across borders, you don’t need armoured trucks or customs paperwork. You just send the token like you’d send ETH or USDT. The token’s value tracks the live price of gold. If the market pushes gold higher, your XAUt rises in value. If gold falls, the token does too. That link makes it appealing for investors looking for a hedge against both inflation and volatile crypto markets.

 

Utility of Tether Gold?

The main use of XAUt is investment or as an alternative stablecoin that's not USD pegged, but the details go deeper. Here’s how you can use Tether Gold in real life:

Portfolio hedge
Many crypto traders move into XAUt during downturns. It gives them exposure to what can be seen as a safe asset without leaving the crypto space.

Fractional ownership
With tokens divisible into six decimal places, someone with just a few dollars can own a slice of gold. That’s nearly impossible with physical bullion.

Global transfer
Sending gold across borders with a click is a major advantage. It avoids both shipping fees and risks tied to moving heavy bars.

Trading
XAUt is listed against BTC, ETH, and USDT pairs. It allows traders to hedge without converting back to fiat.

Redeemability
For those holding enough tokens to cover an entire bar, there’s an option to redeem in Switzerland. While not practical for small holders, it shows the asset is tied to real metal.

 

Advantages of Tether Gold

+ Fully backed by LBMA-certified gold.
+ Divisible into tiny fractions, eg. trade tokenized gold from 0.1 USD or less even.
+ Lower costs than physical gold storage.
+ Can be traded 24/7 on global exchanges.
+ Redeemable for real gold bars.
 

Disadvantages

- Centralized control by Tether Limited.
- Physical redemption only in Switzerland.
- Large minimum redemption sizes, eg. 430 XAU tokens.
- Limited integration in DeFi.
- Tether have not been approved by MICA in Europe.
 

Costs

▪ Rated at 9.5/10

Costs are one of XAUt’s advantages over traditional gold products. There are no custody fees. Besides, you don’t pay for insurance, vault space, or storage.

Transaction costs depend on the blockchain. On Ethereum, gas fees apply, which can be expensive during congestion. Tron’s TRC-20 version usually costs far less, making it attractive for high-frequency transfers.

If you buy or redeem directly from TG Commodities, there’s a 0.25% fee. Redeeming physical gold also comes with delivery costs, since shipping a 400-ounce bar is not cheap. On exchanges, fees follow the platform’s normal maker-taker schedule. Compared with traditional gold ETFs or allocated storage accounts, XAUt keeps costs much lower.

 

Reputation and Buzz

▪ Reputation rated at 9/10
▪ Buzz rated at 9.5/10

The reputation of Tether Gold is tied to Tether itself. Supporters point out that Tether is the largest stablecoin issuer in the world, with years of experience. Skeptics argue that the company’s record on transparency hasn’t been perfect, since audits of reserves are limited.

That said, XAUt has earned a place in crypto circles. On Reddit, Telegram, and trading forums, discussions often compare it with Paxos Gold. Traders argue about the pros and cons of each, but both are accepted as serious gold-backed tokens.

However, XAUt isn’t the kind of coin people hype daily. It doesn’t live in the meme spotlight. But among investors who want a hedge, it has a steady presence. It’s considered a strong product with one of the most liquid markets for gold tokens.

 

FAQ

How does Tether Gold compare with Paxos Gold?

They both mirror the price of gold. Paxos runs under U.S. oversight, while Tether Gold is issued out of Switzerland. The two projects vary in costs, redemption process, and storage setup.

Is XAUt a safe way to hold gold?

It depends on trust. The gold is allocated and linked to serial numbers, but audits aren’t as frequent as some would like. The backing exists, though, and the Swiss location is considered a stable jurisdiction.

Can I stake or earn rewards with Tether Gold?

Not directly. The token doesn’t generate yield. Some exchanges and DeFi platforms allow lending or staking programs, but those are external services.

Are fees lower than buying physical gold?

Yes. Physical gold involves shipping, storage, and insurance. XAUt only carries network fees and small purchase or redemption fees.

Can I redeem it for real gold?

Yes, but only for whole bars. That usually means around 400 ounces. Redemption is only available in Switzerland.

 

History of Tether Gold

January 23, 2020 – Tether launches Tether Gold. It goes live right away on Ethereum and Tron.

January 24, 2020 – Bitfinex adds XAUt trading with USD, USDT, and BTC. This gives the token its first real market.

May 19, 2020 – BTSE lists XAUt. Traders can buy and sell it at any time and even get small fractions of gold.

April 9, 2021 – Bitfinex Derivatives launches XAUt/BTC perpetual contracts. Now people can trade gold directly against bitcoin.

March 23, 2022 – Bitfinex Borrow accepts XAUt as collateral. Holders can use their gold tokens to borrow USD, USDT, or BTC.

April 27, 2023 – MEXC adds XAUt/USDT trading. This makes it easier for users in Asia and Europe to access the token.

April 19, 2024 – Tether expands XAUt to the TON blockchain. Another network now supports the gold token.

June 17, 2024 – Tether launches Alloy. These are new tokens backed by Tether Gold.

April 22, 2025 – XAUt price hits a record high, following the global rise in gold.

July 24, 2025 – Tether confirms nearly 250,000 XAUt in circulation, backed by 7.66 tons of gold stored in Switzerland.

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Screenshots from Tether Gold

 

More sites where to buy/sell/trade Tether Gold

Below you can see some other platforms, exchanges and/or brokers where you can buy, sell or trade this token. Click on the logo to read our review.