๐Ÿฆ Tether Expands Gold-Backed Lending With Tokenized Gold Collateral
Tether has partnered with crypto lending platform Ledn to allow holders of XAUT โ€” Tetherโ€™s tokenized gold product โ€” to use their gold-backed tokens as collateral for loans without needing to sell their gold.
๐Ÿฅ‡ Each XAUT token represents one troy ounce of physical gold stored in Swiss vaults, with Tether currently holding around $23 billion worth of physical gold reserves backing the product.
๐Ÿ’ฐ The model works similarly to Lednโ€™s long-running Bitcoin-backed lending service, where collateral remains fully reserved and is not rehypothecated or lent out again.
๐Ÿ“ˆ The move is part of Tetherโ€™s broader long-term expansion strategy, as the company continues using profits generated from USDT to invest across multiple sectors including:
โ€ข energy
โ€ข Bitcoin mining
โ€ข AI infrastructure
โ€ข and financial services
๐ŸŒ The partnership also reflects growing interest in tokenized real-world assets (RWAs), especially products combining:
โ€ข traditional stores of value like gold
โ€ข with blockchain-based liquidity and lending infrastructure.
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