About
Tether Gold (XAU₮) is a tokenized real-world asset designed to provide blockchain users with direct digital ownership of physical gold. Unlike traditional gold investments such as bullion or ETFs, each XAU₮ represents ownership of one fine troy ounce of London Good Delivery gold bars held securely in Swiss vaults under stringent storage protocols. This model aims to combine the enduring store-of-value properties of physical gold with the liquidity, transparency, and transferability offered by blockchain technology.
The project was introduced by TG Commodities Limited, part of the broader Tether ecosystem known for its flagship USDT stablecoin. The launch in January 2020 responded to growing demand for secure digital exposure to gold, attracting both institutional and retail interest as global macroeconomic uncertainty and inflation concerns increased. XAU₮ is part of a broader category of tokenized real-world assets on blockchain, bridging traditional finance and decentralized finance (DeFi).
Technically, Tether Gold is issued on multiple blockchains including Ethereum (as an ERC-20 token) and TRON (as a TRC-20 token), with ongoing expansions into omnichain versions that allow broader cross-chain interoperability. The token leverages standard smart contract mechanics for transfers and custody proofs while maintaining an auditable linkage to physical gold reserves.
Each XAU₮ token is backed 1:1 by a fine troy ounce of LBMA-certified physical gold stored in Swiss vaults. Regular third-party attestations confirm that the supply of tokens in circulation is matched by equivalent gold holdings, providing holders with confidence in the asset’s backing. The protocol does not charge ongoing custody fees, only transaction-related costs.
Tether Gold functions both as a stable asset for investors seeking inflation resistance and as a tradable digital token on multiple exchanges and platforms. Its connection to real gold offers diversification for crypto portfolios and an alternative to fiat-pegged stablecoins, especially in markets where gold has cultural or economic significance as a store of value.
