Tether Gold (XAUt) is a tokenized gold product from Tether where one XAUt token represents ownership of one fine troy ounce of physical gold. In Tether’s description, the gold is allocated, stored in Swiss vaults, and tied to London Good Delivery standards, as stated in Tether’s announcements about XAUt’s backing and custody setup on tether.io.
XAUt is designed to combine gold exposure with crypto-style portability, including 24/7 transfers and exchange trading. Tether also emphasizes that the allocated gold is identifiable by unique bar information such as serial number, purity, and weight in its product communications on tether.io.
Tether describes Tether Gold as a digital asset offered by TG Commodities S.A. de C.V., and it states that TG Commodities is responsible for issuance and redemption in its Tether Gold documentation, including the official Relevant Information Document.
A practical distinction matters here.
Tether’s own documentation explains that its obligations apply to primary market users and that secondary market activity follows the rules of those third-party venues, as described in the Relevant Information Document.
On Ethereum, XAUt is an ERC-20 token with 6 decimals, which can be confirmed by inspecting the token contract page on Etherscan.
The divisibility allows very small fractional amounts of gold exposure. Tether has referenced micro-divisibility (down to 0.000001 troy ounces) in product communications.
Tether’s framing is “allocated gold, not pooled claims.” In practice, this means XAUt is intended to represent ownership rights in allocated gold bars, with bar attributes intended to be verifiable through Tether’s tooling as described in its product materials.
XAUt usually trades close to the value of one troy ounce of gold, but price can deviate due to:
The token is still a crypto market instrument, so venue mechanics matter.
For XAUt, Tether’s own integration page lists the Ethereum contract address under its Supported Protocols section at tether.to Supported Protocols, which links directly to the contract on Etherscan.
The address shown by Tether’s own Supported Protocols page is:
If a platform claims “XAUt on another chain,” it can be a bridged asset, a wrapped version, or a different token. The safest approach is to treat anything not listed on Tether’s Supported Protocols page as non-canonical, and validate it carefully before interacting.
Most people get XAUt via exchanges and trade it like any other spot asset. This is secondary market exposure.
For safer execution:
Tether’s documentation describes a primary market flow where a KYC-verified customer can purchase directly through the Tether Gold website. The Relevant Information Document states a current minimum purchase size of 50 XAUt, and it explains that onboarding involves identity verification.
XAUt can be held like other ERC-20 assets.
Because XAUt is ERC-20, a wallet can also hold approvals for spending by smart contracts. That matters for safety.
Tether’s documentation states that redemptions can only occur for full bars of gold, and it explains why token holders are generally asked to deposit at least 430 XAUt to ensure enough ounces to match a bar that can vary in weight around the London Good Delivery standard range.
Tether has described redemption options that include delivery to a Swiss address or personal pickup from the vault in its public education content.
The R.I.D. describes a primary market purchase cost based on Swiss gold market acquisition costs plus a quoted fee, noting a referenced fee level of 25 bps at the time of the document.
It also describes a USDT 150 verification fee for new KYC applications and notes how that fee is handled, also in the same Relevant Information Document.
Tether publishes periodic statements of XAUt reserve and circulation metrics in its announcements. For example, its Q3 2025 update published both physical gold ounces and tokens in circulation, and it stated reserves are held in Switzerland in London Good Delivery compliance.
A live reserve dashboard for XAUt is maintained at Tether’s gold reporting portal on gold.tether.to/reports, which is designed to show tokens in circulation and the backing model.
On Ethereum, the token’s on-chain supply and holders can be checked on Etherscan. This does not prove vault holdings by itself, but it verifies on-chain issuance and circulation.
Scams often copy tickers like “XAUT” with lookalike contracts. The simplest defense is verifying the address using Tether’s own Supported Protocols page and cross-checking the exact token contract on Etherscan.
Sending tokens to an address or exchange that does not support the asset can lead to permanent loss. Tether’s support guidance on token recovery warns to send tokens only to destinations that explicitly support them.
If a wallet used XAUt in DeFi, it may have approvals that allow smart contracts to transfer XAUt later. In general, approvals should be revoked when they are no longer needed, especially after security incidents or after interacting with unknown contracts.
XAUt is typically used for:
XAUt is not a direct substitute for holding small physical coins at home. Redemption is designed around large bar increments.
XAUt depends on issuer processes, vault custody, and legal structure. The token is not a gold ETF and does not remove counterparty risk.
Redemption is structured around full bars and KYC, which can make physical delivery impractical for smaller holders.
Transfers can become expensive or delayed during congestion. Wallet mistakes are hard to reverse.
Primary market access depends on identity verification and eligibility rules, which can change by jurisdiction.
Tether Gold (XAUt) is a tokenized gold product designed to represent ownership of one fine troy ounce of allocated physical gold per token, with custody and compliance claims described in Tether’s disclosures. The safest way to use it is to verify the official Ethereum contract, understand the difference between secondary-market trading and primary-market redemption, and treat approvals, custody, and redemption constraints as core parts of the risk model.
The post Tether Gold (XAUt) Guide: How It Works, How To Verify It, and How To Use It Safely appeared first on Crypto Adventure.
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