Tether is expanding its tokenized gold business by enabling holders of its XAUT token to borrow against their bullion without selling the underlying asset. The move mirrors the mechanics of bitcoin-backed lending, letting users access liquidity while retaining exposure to gold's price movements. The strategy puts Tether's roughly $23 billion gold stockpile to productive use, generating new revenue streams beyond its core stablecoin operations. XAUT, which represents physical gold held by the company, has positioned Tether as a notable player in the tokenized commodities space. By offering bullion-backed loans, the firm aims to deepen the utility of its gold token and attract holders seeking borrowing options similar to those available in crypto-collateralized lending markets. The development reflects Tether's broader push to diversify its asset base and financial products beyond traditional stablecoin issuance.
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