What Is Tether Gold (XAUT)? A Guide to Tokenized Gold

Key Takeaways

• XAUT is a tokenized gold version of real physical gold: each token equals 1 troy ounce stored in secure Swiss vaults, fully backed 1:1 and verifiable on gold.tether.to.
• It offers advantages over traditional physical gold for many users, with no ongoing storage fees, fractional ownership (including tiny amounts via the new Scudo unit), instant global transfers, and 24/7 trading.
• In 2026's high-gold environment, XAUT provides a practical way to gain digital gold exposure and diversify, with standard considerations like issuer (Tether) reliance and blockchain factors — ideal for convenience, while physical gold suits those prioritizing full control.

Introduction

Traditional gold investing can be slow, costly, and hard to move across borders.

Tether Gold offers a tokenized representation of physical gold that can move on public blockchains while remaining linked to specific gold bars. It is like holding a warehouse receipt for a gold bar, but in blockchain form. The system uses Ethereum and TRON tokens to represent fractional ownership of allocated gold, enabling near‑instant on‑chain transfers. The XAUT token fuels everything: value transfer, on‑chain settlement, and blockchain interoperability for Tether Gold.

This guide explains everything simply: what Tether Gold is, how XAUT works, why it matters in 2026, and how to buy XAUT on Phemex.

Quick Facts About XAUT

Here is a quick overview of key data for XAUT.

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Spot Trading: You can trade XAUT/USDT on the spot market.

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What Is XAUT?

Tether Gold is a tokenized gold asset where each XAUT token is designed to represent ownership of one troy fine ounce of physical gold held in custody. The token runs on public blockchains (Ethereum and TRON), which allows transfers and custody using standard crypto wallets while maintaining an economic link to allocated gold bars stored in secure vaults.

Key Features

• Gold‑backed structure: Each XAUT token corresponds to one troy fine ounce of physical gold on a specific bar. This means the token’s reference value is tied to gold rather than to fiat currencies or crypto markets.

• Multi‑chain availability: XAUT is issued as an ERC‑20 token on Ethereum and as a TRC20 token on TRON. ERC‑20 and TRC20 are common token standards that define how tokens behave on their respective blockchains, making integration with wallets and protocols straightforward.

• Allocated vault storage: The underlying gold is held in vaults in Switzerland. The structure is designed so that tokens correspond to identifiable gold bars, aligning the on‑chain supply with off‑chain reserves.

• No ongoing custody fees at token level: Public descriptions highlight that Tether Gold is offered without explicit recurring custody fees charged to token holders, which differs from some traditional gold products that levy annual storage fees.

• Real‑world asset (RWA) design: XAUT belongs to the tokenized commodities and real‑world assets category, aiming to bridge physical gold markets with blockchain‑based trading and settlement.

What Does XAUT Do?

XAUT’s main role is to represent an ownership claim on physical gold while being transferable like any other crypto token. This enables several practical use cases that link traditional gold exposure with digital asset infrastructure.

• On‑chain gold exposure: XAUT allows holders to gain economic exposure to gold price movements while keeping their position in token form. Instead of holding bars or coins, users can hold XAUT in a wallet and track gold‑linked value on exchanges or portfolio tools.

• Cross‑border value transfer: Because XAUT is an ERC‑20 and TRC20 token, it can be sent globally in minutes, subject to network conditions and fees. This can be used for remittances or settlement between parties who prefer gold‑linked value instead of fiat or crypto‑only exposure.

• Portfolio diversification in crypto ecosystems: Traders and long‑term investors can use XAUT to diversify portfolios that are otherwise concentrated in volatile crypto assets. A gold‑linked token can act as a stabilizing component relative to purely crypto‑denominated holdings.

• Collateral in on‑chain finance: As a tokenized commodity with a relatively stable reference asset, XAUT can be integrated by DeFi protocols or centralized platforms as collateral for loans, margin trading, or structured products, when those platforms choose to support it.

• Facilitating gold‑denominated pricing: Businesses or individuals who wish to denominate values in gold rather than fiat can use XAUT as a unit of account in contracts or invoicing where counterparties accept settlement in tokenized gold.

XAUT Tokenomics

Public information about Tether Gold focuses mainly on its gold‑backed structure rather than on a typical crypto tokenomics allocation model. The token is designed so that each unit in circulation corresponds to one troy fine ounce of physical gold held in custody, and issuance or redemption is constrained by the amount of underlying gold.

• Token name and ticker: Tether Gold – XAUT.
• Total and circulating supply: Around 520.08K XAUT total supply and 409.21K XAUT circulating, with values fluctuating as tokens are minted or redeemed against physical gold.
• Supply mechanics: Tokens are created (minted) when new gold is allocated and tokenized, and removed from circulation (redeemed) when holders exchange XAUT back for gold or its cash equivalent via supported channels. There is no fixed maximum supply; supply depends on market demand and available gold reserves.

XAUT vs. PAXG

Tether Gold competes most directly with other tokenized gold products, notably Paxos’ Pax Gold (PAXG). Both aim to give token holders exposure to physical gold via ERC‑20 tokens while using different issuers, vault locations, and regulatory frameworks.

PAX Gold issues PAXG tokens, each backed by one fine troy ounce of gold held in London vaults under the custody of a regulated trust company. Tether Gold issues XAUT, each corresponding to one troy fine ounce of gold stored in Swiss vaults. Both tokens operate on Ethereum and integrate with crypto exchanges and on‑chain tools, but they differ in issuer jurisdiction, custody arrangements, and some fee structures.

From a user’s perspective, XAUT emphasizes Swiss vault storage and zero custody fees at the token level, while PAXG emphasizes New York regulatory oversight and monthly audits under a trust structure. Choice between them often reflects preferences about jurisdiction, custody, integrations, and the broader ecosystem around each issuer.

Comparison Table

Technology Behind XAUT

Tether Gold uses standard public blockchains instead of a proprietary ledger. On Ethereum, XAUT is implemented as an ERC‑20 smart contract at address 0x68749665ff8d2d112fa859aa293f07a622782f38. On TRON, it is issued as a TRC20 token with equivalent economic properties.

• ERC‑20 / TRC20 standards: These are common token standards that define interfaces for transfers, balances, and approvals. They allow XAUT to work with existing wallets, exchanges, and DeFi protocols.

• Smart contract accounting: The token contracts track balances and transfers on‑chain, while off‑chain systems at the issuer match total token supply to allocated gold bars.

• Multi‑chain infrastructure: Operating on Ethereum and TRON enables different fee and speed trade‑offs and allows users to choose the network that best fits their use case.

• Reserve linkage: The economic design links total supply of XAUT to vault holdings. When new gold is added, tokens can be minted; when gold is withdrawn or redeemed, tokens can be burned.

Team and Origins

Tether Gold is part of the product suite associated with Tether, the company known for issuing the USDT stablecoin. Public descriptions present Tether Gold as a gold‑backed token issued within this broader Tether ecosystem, using the same general infrastructure for wallets and on‑chain operations.

The project is positioned as a way to extend Tether’s experience in issuing and managing reserve‑backed tokens into the gold market. The launch context reflects growing demand for tokenized real-world assets, particularly commodities like gold, that can be traded and held using standard crypto infrastructure. 

XAUT News and Milestones

• 2020: Tether Gold (XAUT) appears on major market data platforms as a tokenized gold asset, reflecting the broader emergence of real‑world assets on public blockchains.
• 2020–2022: XAUT supply and market capitalization grow as more physical gold is tokenized and brought on‑chain in response to investor interest in gold exposure via crypto rails.
• 2023: XAUT gains increased recognition within the real‑world asset (RWA) and tokenized commodities categories on data aggregators, alongside integrations with additional wallets and market venues.
• 2024–early 2026: Market data show XAUT reaching a market capitalization in the low‑billion‑dollar range, with total value locked in associated products exceeding two billion USD equivalent, indicating continued institutional and retail uptake of tokenized gold.

Is XAUT the Same as Physical Gold? Which is Better?

No, XAUT is not the same as physical gold — it is a digital tokenized representation that provides direct 1:1 ownership exposure and legal claim to allocated physical gold, but with significant differences in form, accessibility, costs, and risks.

What it shares with physical gold:

• Each XAUT token represents ownership of one fine troy ounce of allocated physical gold (LBMA Good Delivery standard), stored in secure Swiss vaults. The backing is fully verifiable — check specific gold bar serial numbers, purity, weight, and total reserves on the official Tether Gold website (gold.tether.to).
• Reserves are regularly attested by independent firms (e.g., latest available reports confirm full 1:1 backing with over 16,000+ kg / hundreds of thousands of ounces in custody), and token holders have legal ownership rights to the underlying metal.

Key differences from holding physical gold directly:

• Form & control — Physical gold provides immediate tangible possession (bars, coins, or jewelry in your personal safe, bank vault, or dealer storage). XAUT is a blockchain-based digital claim — you hold the token in a crypto wallet, not the metal itself, unless you redeem (which involves high minimums, fees, and logistics).
• Accessibility & convenience — XAUT enables fractional ownership (as small as 0.000001 oz, with new "Scudo" denomination for even finer units introduced in early 2026), 24/7 global trading on exchanges, instant on-chain transfers (peer-to-peer across borders), and no ongoing storage/insurance costs. Physical gold requires buying full units, paying dealer premiums, arranging secure transport/storage, and dealing with limited trading hours/geographic restrictions.
• Costs — XAUT has no recurring custody fees (a major advantage over many traditional vaults), but includes a one-time ~0.25% (25 basis points) fee for issuance/redemption from the issuer, plus blockchain gas/network fees for transfers and exchange trading fees. Physical gold often incurs buy/sell spreads (1-5% premiums), annual storage/insurance fees (0.5-1%+), and potential transport/security costs.
• Risks — XAUT introduces counterparty/issuer risk (trust in Tether to maintain reserves, secure vaults, and honor redemptions) and blockchain risks (smart contract vulnerabilities, network issues). Physical gold has no third-party dependency but exposes you to theft, loss, geopolitical seizure risks, and liquidity challenges (selling may involve dealers and delays).

Which is better — XAUT or physical gold?

It depends on your needs and priorities:

• Choose XAUT if:

  • You want easy, low-friction gold exposure for portfolio diversification, hedging inflation/crypto volatility, or cross-border transfers.
  • You value divisibility (invest small amounts), liquidity (24/7 trading), and convenience (no storage hassles or transport).
  • You're comfortable with digital assets and counterparty risk, and prefer no ongoing fees.
  • You're a smaller/retail investor or crypto-native user — most holders never redeem for physical; they trade the token for exposure.

• Choose physical gold if:

  • You prioritize absolute control, zero counterparty risk, and tangible ownership ("if you don't hold it, you don't own it").
  • You're a large investor planning long-term holding or potential physical delivery without relying on an issuer.
  • You want to avoid blockchain/smart contract risks or prefer traditional safe-haven assets outside digital ecosystems.

In 2026's environment (with gold prices at record highs and rising tokenized asset adoption), XAUT excels for most modern investors seeking economic exposure to gold with blockchain benefits — it's often described as "physical gold without the headaches."

Physical gold remains the gold standard for ultimate security and independence, but it's more cumbersome and costly for everyday use. Many experts recommend a mix: use XAUT (or similar tokenized products) for liquidity/diversification and physical gold for core, long-term holdings.

Is XAUT a Good Investment?

XAUT provides a way to hold gold‑linked value using public blockchains, combining commodity exposure with crypto‑style custody and transfer. Its market capitalization in the low‑billion‑dollar range and substantial tokenized gold reserves suggest that it has achieved a meaningful role in the tokenized commodity segment.

At the same time, XAUT inherits both the risks of gold as an asset and the operational and regulatory risks of tokenized products. Its value can fluctuate with gold prices, and holders depend on the issuer’s custody practices and on the security of the underlying blockchains. Competition from other tokenized gold products and alternative hedging instruments also matters.

Community and analyst sentiment in public forums tends to frame XAUT as an infrastructure‑style asset rather than a high‑growth speculative token. For many participants, it is considered a tool for diversification, hedging, or stable value storage within crypto portfolios, rather than a vehicle for outsized returns.

How to Buy XAUT on Phemex

1. Sign Up: Create a Phemex account by entering your email and completing the secure verification process: https://phemex.com/register
2. Choose a Payment Method: Fund your account using options such as credit card, bank transfer, or crypto deposits to buy XAUT securely.
3. Buy XAUT: Enter your investment amount in your local currency, preview the XAUT amount, and confirm to receive it in your Phemex wallet. View the full guide here.

Frequently Asked Questions (FAQ)

Q: Is XAUT reliable?
A: Yes, in the context of tokenized gold products — it maintains full 1:1 backing with regular attestations, verifiable reserves, and a strong track record since 2020. However, it carries counterparty risk tied to the issuer (Tether), redemption limitations for retail users, and standard blockchain risks. Many view it as reliable for on-chain exposure, but always verify latest reserves and consider your risk tolerance.

Q: What is XAUT?
A: XAUT is the token symbol for Tether Gold, a gold-backed digital asset where each token is designed to represent one troy fine ounce of physical gold held in custody. It operates on public blockchains while maintaining an economic link to specific gold bars.

Q: How does Tether Gold work?
A: Tether Gold issues XAUT tokens on blockchains such as Ethereum and TRON, using smart contracts to record balances and transfers. Off‑chain, the issuer allocates physical gold bars in vaults to match the token supply, so each token corresponds to one troy fine ounce of gold.

Q: What are the main use cases for XAUT?
A: XAUT can be used to gain on‑chain exposure to gold prices, transfer gold‑linked value across borders, diversify crypto portfolios, and serve as potential collateral in financial products that choose to support tokenized gold.

Q: Is XAUT reliable?
A: Yes, in the context of tokenized gold products — it maintains full 1:1 backing with regular attestations, verifiable reserves, and a strong track record since 2020. However, it carries counterparty risk tied to the issuer (Tether), redemption limitations for retail users, and standard blockchain risks. Many view it as reliable for on-chain exposure, but always verify latest reserves and consider your risk tolerance.

Q: Where can I buy XAUT?
A: XAUT can be obtained on exchanges that list it as a trading pair. On Phemex, users can register, deposit funds, and trade the XAUT/USDT spot pair or XAUT‑USDT perpetual contract when these markets are available.

Q: What makes XAUT different from other gold‑backed tokens?
A: XAUT emphasizes Swiss vault storage, multi‑chain issuance on Ethereum and TRON, and a design that avoids explicit custody fees at the token holder level. Other products, such as PAX Gold, differ in issuer jurisdiction, vault location, and regulatory structure.

Q: What are the risks of holding XAUT?
A: XAUT carries gold price risk, issuer and custody risk, and standard blockchain risks such as smart contract or network issues. Regulatory changes affecting tokenized commodities and competition from other products may also affect demand and pricing.

Summary: Why It Matters

Tether Gold’s XAUT token demonstrates how traditional assets like gold can be represented and transferred on public blockchains. By linking each token to one troy fine ounce of allocated gold in Swiss vaults, it allows investors to combine the familiarity of gold with the flexibility of crypto infrastructure. This can support portfolio diversification, cross‑border settlement, and new forms of collateral within digital markets. At the same time, users need to consider gold price movements, issuer practices, and regulatory developments. 

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