Tether Partners With Ledn to Enable Borrowing Against XAUT Gold Tokens

Tether is extending its tokenized gold initiative through a collaboration with Ledn that will let XAUT holders access loans backed by their bullion holdings later in 2026.

Tether brings XAUT support to Ledn for borrowing. The crypto lender will integrate Tether Gold alongside BTC and USDT, with XAUT-collateralized borrowing slated to launch before year-end, the firms reported on June 18.

Holders can obtain liquidity from their positions without liquidating the physical metal each token represents. Every XAUT corresponds to one troy ounce of bullion held in Swiss vaults.

Tether monetizes its gold reserves. The stablecoin issuer reportedly maintains approximately $23 billion in physical gold tied to XAUT. It has built a stockpile of roughly 140 metric tons, positioning the firm among the largest corporate owners worldwide.

Traditionally, gold lending has been limited to central banks, big financial players and bullion merchants. The two companies contend that tokenization lets the metal serve as digital collateral similar to bitcoin, freeing up capital while the underlying asset stays intact.

Ledn applies its bitcoin-backed lending model to gold. The new product follows the structure Ledn has applied to bitcoin loans for years. Collateral remains fully reserved at a 1:1 ratio and is neither re-lent nor deployed for yield, the firm stated, distinguishing its approach from platforms that collapsed in the 2022 bear market.

Tether CEO Paolo Ardoino said in a statement, "As digital assets become an increasingly important part of the global economy, demand is growing for solutions that combine long-term ownership with financial flexibility."

Tether expands beyond stablecoins into gold and other sectors. Profits from USDT, the dominant stablecoin, are funding diversification across technology and infrastructure. The issuer has evolved over recent years into a group active in finance, energy and artificial intelligence.

In addition to expanding XAUT, Tether has taken stakes in the Gold.com marketplace and teamed with Antalpha on further lending and redemption options for the token. The company has also directed capital into bitcoin mining, renewable power initiatives and Northern Data, an AI-focused computing provider.