Tether unlocks $23B gold reserves for crypto lending via Ledn
In brief
- Tether Gold (XAUT) holders can borrow against tokenized bullion via Ledn, launching later this year
- Tether holds $23 billion in physical gold (140 metric tons) backing each XAUT token
- Gold-backed lending model expands from central banks to crypto through Tether's partnership
Tokenized gold meets crypto lending
Ledn is adding support for XAUT alongside bitcoin and Tether's stablecoin USDT, with borrowing against XAUT expected later this year. The model mirrors Ledn's approach to bitcoin-backed loans: client collateral continues to be held 1:1 without being lent out or used to generate yield. Borrowers retain ownership of their gold while accessing capital.
Tether holds around $23 billion worth of physical bullion backing XAUT, with each token representing one troy ounce of gold stored in vaults in Switzerland. The company has accumulated roughly 140 metric tons of physical bullion, making it one of the world's largest corporate gold holders.
By tokenizing physical gold, the asset can function like digital bitcoin as collateral, unlocking liquidity without having to sell it. This approach lets investors hold long-term exposure while accessing short-term financing—a flexibility that appeals to both crypto traders and institutional players.
Expanding the gold economy
Tether isn't stopping at Ledn. The company has invested in precious metals marketplace Gold.com and partnered with crypto financing firm Antalpha to expand the use of XAUT in lending and physical redemption.
These moves reflect a broader strategy. Beyond precious metals, Tether has invested in bitcoin mining and renewable energy projects, while backing AI infrastructure provider Northern Data. The stablecoin issuer is diversifying its balance sheet and monetizing its holdings across multiple verticals.
Gold-backed lending is traditionally the realm of central banks, major financial institutions and bullion dealers. Tether is attempting to monetize what has become one of the world's largely privately held gold reserves. The Ledn partnership signals a shift—crypto infrastructure is now mature enough to handle institutional-grade collateral and lending mechanics.
