Tether and Ledn are expected to launch gold‑backed loans using Tether Gold (XAUT) later this year, allowing token holders to borrow against one troy ounce of physical gold per XAUT without selling the token.

Tether holds about $23 billion of physical gold backing 140 metric tons of XAUT, stored in Swiss vaults, with each XAUT token representing one troy ounce of gold. Ledn, a crypto lender, already offers bitcoin‑backed loans and will add XAUT support, following its 1:1 collateral model in which client collateral is not re‑lent.

The new loans mirror Ledn’s existing bitcoin‑backed lending model, which keeps collateral fully reserved. Tether aims to monetize its gold reserves and the revenue from its USDT stablecoin, expanding its business beyond stablecoin issuance into finance, energy and AI. The company has invested in Gold.com and crypto financing firm Antalpha to broaden XAUT usage.

Tether CEO Paolo Ardoino said demand for financial flexibility is growing as digital assets become more important in the global economy. The offering is part of Tether’s strategy to diversify its revenue streams and build a broader technology and infrastructure group.

The launch could increase liquidity for gold‑backed token holders, but it also raises questions about how Tether will manage the underlying gold reserve and integrate the new lending service into its ecosystem.