Key Facts

• Tether has a $23 billion gold stockpile that it plans to utilize for bullion-backed loans to holders of its tokenized gold asset, XAUT.
• The stablecoin issuer is allowing XAUT holders to borrow against their bullion, mirroring a similar lending strategy that uses bitcoin as collateral.
• By offering bullion-backed loans, Tether aims to enable users to access liquidity without having to sell their gold holdings.
• The tokenized gold asset, XAUT, represents ownership of physical gold and is part of Tether's efforts to expand its presence in the digital asset market.
• Tether's decision to offer bullion-backed loans is an extension of its tokenized gold strategy, which seeks to provide users with more flexibility and liquidity in managing their gold holdings.