History of Tether Gold

The Evolution of Tether Gold (XAUT): A Crypto-Backed Gold Standard

Tether Gold (XAUT) occupies a distinct position in the digital asset landscape, merging the historical value of gold with the programmability of blockchain. Its origin story starts with the strategy behind Tether’s expansion beyond fiat-backed stablecoins. Having already dominated the USD-pegged stablecoin market with USDT, Tether sought to tokenize real-world assets—gold being the most obvious candidate given its entrenched legacy in global monetary systems.

XAUT was introduced as a response to the increased appetite for non-fiat-backed, stable-value digital assets. However, unlike algorithmic stablecoins or fiat on-chain tokens, XAUT is allegedly backed by physical gold stored in Swiss vaults. What differentiates XAUT's issuance model is its reliance on allocated gold rather than unallocated exposure. Each XAUT is said to be equivalent to one troy ounce of LBMA-accredited gold, and token holders are given a serial number for their specific gold bars, a move aimed at enhancing transparency in an increasingly skeptical market.

From a technical standpoint, XAUT was simultaneously issued on Ethereum (ERC-20) and TRON (TRC-20), a deliberate bid for broader interoperability and lower transaction fees—a constraint many Ethereum-native assets face during periods of network congestion. Despite this dual-chain deployment, liquidity and exchange support remain skewed toward Ethereum-based tokens, reflecting broader DeFi integration trends.

Yet, Tether's operations with XAUT haven't been devoid of criticism. The asset’s centralized custody model—control over the underlying gold remains with a single entity—stands in contrast to the ethos of decentralized ownership. Moreover, despite attempts to promote redeemability of tokens for physical gold, actual redemption processes remain limited, both in usability and accessibility. This echoes concerns seen with many real-world-asset tokenizations, where off-chain infrastructure often undermines on-chain promises.

Tether’s decision to avoid public attestations or third-party audits for its gold reserves has also raised flags within circles that view on-chain transparency as essential. Although ownership details for the underlying gold are traceable via published bar lists, the frequency and methodology of reserve updates are opaque, echoing historical criticisms of Tether’s earlier reserve disclosures linked to USDT.

Users looking to store XAUT in a non-custodial environment often rely on wallets like MyEtherWallet. For an in-depth understanding of wallet security and user control mechanisms, you can explore Is MyEtherWallet Safe or a Scam?.

As Tether continues to experiment with cross-chain deployments and additional assets, XAUT's development highlights the ongoing struggle of reconciling the trustless nature of blockchain technology with custodial reliance inherent in real-world asset tokenization.

For those operating in jurisdictions where crypto-gold onboarding is supported, platforms such as Binance often enable XAUT purchases alongside traditional digital assets.

How Tether Gold Works

How Tether Gold (XAUT) Works: Tokenized Gold on a Blockchain

Tether Gold (XAUT) operates as a digital token representing physical ownership of gold stored in Swiss vaults. Each on-chain XAUT token is said to be backed by one troy ounce of physical gold via Tether’s subsidiary, TG Commodities Limited. The core mechanism behind XAUT combines traditional asset custody with blockchain-based token issuance, blurring the line between physical and digital commodities.

At its technical level, XAUT is issued on both Ethereum (as an ERC-20 token) and TRON (as a TRC-20 token), making it accessible across diverse DeFi and CeFi ecosystems. Users can trade it on-chain, use it as collateral, or move it across wallets and exchanges just like any fungible crypto asset. Wallet support is broad — platforms like MyEtherWallet have enabled storage and transactions for ERC-20-based XAUT, which is explored more in A Deepdive into MyEtherWallet (MEW).

Unlike algorithmic stablecoins or basket-backed digital assets, the core value proposition of XAUT lies in its claim of direct one-to-one gold backing. However, Tether does not automatically redeem tokens for physical delivery unless a minimum redemption of 50 XAUT (50 oz of gold) is met and processed through a formal redemption request. Ownership of the gold is represented digitally, but actual custody remains centralized. Consequently, it does not allow for non-custodial ownership of gold itself—users are still dependent on Tether’s handling and verification system.

One critical issue is the lack of on-chain proof-of-reserve. While Tether asserts that gold reserves are fully backed and held in audited Swiss vaults, these claims are not verifiable through decentralized or automated mechanisms. Centralized audits and disclosure schedules are solely at the discretion of Tether, which exposes users to counterparty risk and raises transparency concerns—similar to long-standing debates around Tether's USDT issuance practices.

XAUT’s integration into DeFi is also relatively limited compared to stablecoins like USDC or DAI. While token composability is technically possible via ERC-20/ TRC-20 standards, there are few protocols offering native XAUT functionalities like yield farming, staking, or lending. This limits its functionality for users seeking more than a store of value or a speculative asset.

Users seeking cold storage should use secure wallets like MyEtherWallet, especially for long-term holding outside of centralized exchanges. For those who do prefer exchange-based trading, platforms like Binance often feature higher liquidity and fiat onramps for XAUT.

Use Cases

Real-World Use Cases of Tether Gold (XAUT) in Crypto Ecosystems

Tether Gold (XAUT) occupies a unique niche in the crypto landscape by representing ownership of allocated physical gold on a blockchain. While it's often lumped in with stablecoins, XAUT's use cases diverge significantly due to its link with a non-fiat asset. For experienced crypto users, its functionality becomes especially relevant in scenarios demanding asset diversification, on-chain collateralization, and risk hedging within DeFi protocols.

One of the primary use cases for XAUT is as a collateral asset in decentralized finance. Its non-correlation with traditional fiat-backed stablecoins such as USDT and USDC makes it an appealing hedge against macroeconomic uncertainty. Protocols integrating synthetic asset platforms or lending protocols can allow XAUT-backed loans, offering borrowers exposure to stable, physical-asset-backed tokens without liquidating their crypto holdings. This model parallels how assets like wrapped BTC are used and becomes even more relevant amid increasing concerns around fiat inflation.

XAUT is also leveraged for wealth preservation during periods of systemic instability—economic or regulatory. For individuals in politically unstable jurisdictions or areas with hyperinflationary economies, XAUT enables exposure to gold via self-custodied wallets, minimizing reliance on intermediaries or banking infrastructure. While not utilized as frequently in high-frequency DeFi strategies due to its lower liquidity compared to leading stablecoins, XAUT appeals to long-term holders who value store-of-value properties anchored in allocated gold.

A less explored but emerging use case is tokenized asset diversification on-chain. Investors optimizing for minimized correlation across portfolios may hold XAUT alongside volatile DeFi tokens, ETH, or BTC to strategically balance drawdown risk. While it doesn't qualify as yield-generating in its native form, pairing XAUT in structured DeFi products—like vaults or automated rebalancing strategies—can offer more robust risk-adjusted returns.

However, the token's utility isn't without limitations. Transaction speeds are bottlenecked by the Ethereum or Tron networks, and actual redemption for physical bars (though theoretically possible) involves friction from jurisdictional compliance and minimum redemption requirements. This raises questions around true liquidity and asset convertibility, especially under stressed market conditions when demand for gold surges.

For users seeking to custody XAUT, it is compatible with non-custodial wallets like MyEtherWallet (MEW). More insights can be found in our guide Unlocking MyEtherWallet: A User's Guide, which walks through how to store ERC-20 tokens like XAUT securely.

For those aiming to acquire XAUT with low trading fees, platforms like Binance often list the asset with ample market depth.

Tether Gold Tokenomics

XAUT Tokenomics: Dissecting Tether Gold's Asset-Backed Structure

Tether Gold (XAUT) distinguishes itself from algorithmic or utility-based tokens by being a fully asset-backed representation of physical gold. Each XAUT token represents ownership of one troy fine ounce of gold on a specific gold bar, allocated in a Swiss vault. This distinguishing feature places XAUT within a narrower class of tokenized real-world assets, which come with a unique set of tokenomic mechanics that diverge sharply from standard crypto economic models.

Fixed Supply Model With Inelastic Issuance

Unlike reflexive supply tokens governed by rebase mechanisms or inflation schedules, XAUT has no predefined issuance rate or token minting model. New XAUT tokens are only issued when counterparties deposit U.S. dollars and take custody of a claim on corresponding physical gold. This produces an inelastic supply curve dictated by demand-side capital inflow and physical gold availability, not network consensus or governance proposals.

The total supply technically expands only when gold is added to the vault and customers request tokenized representation. Conversely, burning XAUT results in redemption of the underlying gold claim. This eradicates speculative monetary policy but also limits composability in DeFi systems hungry for elastic asset behavior.

No Mining or Native Incentive Mechanism

There are no staking, mining, or yield incentives native to the XAUT smart contracts. As such, there is no token-based mechanism to encourage liquidity provisioning, governance participation, or network security. This passive model reflects its asset-backed, bearer instrument nature, but it also means it lacks the native growth incentives that drive adoption in more economically expressive tokens like Aavegotchi's GHST or Wootrade's WOO.

Centralized Custodianship and Off-Chain Dependencies

XAUT’s underpinning mechanism relies entirely on centralized custody by TG Commodities Limited, along with the off-chain auditability of bar serial numbers and vault records. While the token exists and transacts on Ethereum and TRON networks, its trust assumptions hinge on traditional custodianship, not on decentralized trust-minimized protocols. This introduces a layer of custodial risk, a concern frequently echoed in real-asset token discussions.

Additionally, XAUT lacks native support for decentralized interoperability standards, making integrations into DeFi protocols limited or rudimentary compared to systems that embrace decentralized tools such as MyEtherWallet or DAO-based liquidity engines.

Limited Fungibility in Practice

Though technically fungible, XAUT tokens are traceable to specific gold bars. This pseudo-fungibility could hamper deep liquidity, especially if token holders begin to differentiate token value based on bar allocations — a risk not typically seen in purely digital stablecoins.

For those looking to engage with XAUT on exchanges directly, Binance offers a trading avenue here, although exposure remains closely tied to centralized infrastructure rather than on-chain liquidity mining or composability.

Tether Gold Governance

Governance Structure of XAUT (Tether Gold): Centralized Mechanisms Behind a Tokenized Commodity

Unlike many digital assets that embrace decentralized governance or DAO-based models, XAUT (Tether Gold) operates under a distinctly centralized structure. Issued by Tether on multiple blockchains including Ethereum and TRON, XAUT's governance is tethered—no pun intended—to established corporate frameworks rather than token-holder voting or on-chain proposals.

Governance of XAUT is solely under the purview of Tether Limited, a centralized entity also responsible for USDT. This allows Tether to maintain full decision-making authority over issuance, redemption, custodial arrangements, and smart contract upgrades. There is no governance token or mechanism allowing XAUT holders any input into the operation or development of the asset. This is a purposeful design decision likely influenced by regulatory considerations, particularly because XAUT represents claims on allocated physical gold stored in Swiss vaults.

One of the implications of this governance model is the lack of transparency commonly expected from DeFi-native or fully on-chain projects. While Tether claims regular third-party audits of its gold holdings, the verification process is not community-verifiable. No decentralized oracle mechanisms are in place to autonomously confirm changes in gold backing, unlike oracle-integrated assets like those explored in exploring-governance-in-band-protocol.

Furthermore, since issuance and redemption of XAUT are processed via Tether’s platform, the process is entirely custodial and off-chain. This adds a significant layer of counterparty risk, where trust in Tether's management and solvency becomes paramount. Users must complete KYC/AML procedures and interact with Tether through traditional means rather than blockchain-native protocols.

The governance model does not offer upgrade pathways that involve token-holder consensus. For example, if smart contract modifications are required to reflect new custody policies or technical innovations, Tether can implement them unilaterally. This model lacks the participatory elements associated with platforms that explore the-overlooked-importance-of-on-chain-governance.

This approach may suit institutional traders or traditional investors seeking digital exposure to gold, but it’s at odds with tokenized ecosystems pursuing censorship resistance and collective control. XAUT's operation more closely resembles a tokenized certificate than a crypto-native financial instrument. While it leverages blockchain rails for mobility and transparency of transfers, it's ultimately governed by legacy structures anchored outside of on-chain logic or decentralized community engagement.

For those still open to using centralized assets with flexibility via decentralized wallets and platforms, registering through Binance may offer broader access to XAUT and other tokenized commodities.

Technical future of Tether Gold

XAUT Technical Developments and Roadmap: Examining the Infrastructure of Tether Gold

XAUT (Tether Gold) occupies a unique niche within the crypto asset ecosystem—offering gold-backed stability while existing on-chain across Ethereum (ERC-20) and TRON (TRC-20). However, its technical roadmap diverges significantly from more aggressively evolving DeFi assets. As of now, XAUT's core design emphasizes custodian-backed asset tokenization rather than decentralized governance or composability, which has implications for both its scalability and interoperability.

Smart Contract Architecture and Audit Transparency

The technical infrastructure of XAUT hinges on relatively simple smart contract implementations that facilitate ownership transfers without exposing the underlying audit logic or detailed asset allocation on-chain. This reduces the attack surface but limits transparency. Unlike decentralized assets audited by community mechanisms or open verifiability, XAUT does not publish real-time verification of allocated reserves via cryptographic proofs (e.g., Merkle Trees or zkSNARKs). Users must instead trust Tether’s claims and centralized attestation processes through designated redemption entities.

Although the use of ERC-20 standards ensures compatibility with most wallets like MyEtherWallet, the privilege-based logic prevents integrations with many automated financial primitives such as DeFi lending, automated DEXs, or yield optimization protocols. This is a deliberate design trade-off prioritizing regulatory compliance over composability.

Roadmap Focus: Custodial Support and Cross-Chain Expansion

Tether has historically positioned XAUT as a stable and compliant gateway to tokenized gold, rather than a vehicle for protocol innovation. Future technical developments center on expanding cross-chain liquidity, potentially through bridges to layer-2 networks like Arbitrum or Optimism. However, integrations with Layer-2 ecosystems present security trade-offs due to the non-trustless nature of custodial issuance. These issues mirror concerns explored in The Overlooked Role of Blockchain in Enhancing Cross-Border Payment Systems.

Additional pathways under exploration include support for multi-sig governance of redemption mechanisms or partnerships with token wrapping services to allow XAUT to represent underlying value in synthetic derivatives. However, these remain limited by regulatory and custodial constraints.

Technical Constraints and Friction Points

A major friction point involves the illiquidity on-chain caused by limited DEX support and the absence of decentralized liquidation protocols. Wrapped versions on platforms relying on algorithmic pricing models cannot ingest XAUT without trust assumptions, making it unsuitable for uses like dynamic collateral in CDPs. This sharply contrasts with assets like wrapped BTC or tokenized treasuries, which are more interoperable.

For users expecting smart contract sophistication and integration with oracle layers, XAUT lacks progression. It is technically static, and unlikely to implement decentralized identity, DAO-based governance, or real-time collateral attestations unless Tether shifts toward trust-minimized proofs.

For those seeking a tokenized luxury asset within regulated confines, XAUT offers utility. But for the crypto-native audience, it remains limited in innovation. For access and liquidity, onboarding through centralized exchanges such as Binance remains the dominant route.

Comparing Tether Gold to it’s rivals

XAUT vs GLD: Institutional Gold Meets Crypto-Native Custody

When comparing Tether Gold (XAUT) with SPDR Gold Shares (GLD), it’s clear that both assets aim to provide gold exposure, yet the mechanisms, custody models, and utility differ sharply — especially from a crypto-native perspective.

GLD functions as a traditional ETF backed by physical gold stored in HSBC’s London vault. It offers institutional-grade exposure but lacks direct ownership, programmability, or sovereign custody. XAUT, on the other hand, is an ERC-20 token representing ownership of allocated physical gold held in Swiss vaults under Tether’s custodianship. This subtle yet powerful distinction unlocks composability across DeFi, which is nonexistent for GLD.

One of the starkest differences lies in settlement and transferability. GLD trades only during market hours and settles via traditional financial intermediaries. In contrast, XAUT operates 24/7 and can be moved peer-to-peer using any Ethereum-compatible wallet, such as MyEtherWallet, enabling use across decentralized exchanges, lending protocols, and collateralization frameworks.

GLD’s regulatory framework provides comfort to TradFi participants, benefitting from thorough SEC oversight and integration into brokerage platforms. However, this comes with FRAs, management fees, and indirect ownership. XAUT token holders are issued unique bar numbers, representing specific backend allocation — critical for users prioritizing asset-level transparency, although questions persist around audit access and real-time proof-of-reserve.

Holding GLD in a self-custodied environment is not possible. Investors rely on custodians, fund managers, and bank infrastructure. In contrast, XAUT integrates seamlessly into self-hosted setups. Coupled with integrations in DeFi vaults and staking services, XAUT enables a modular DeFi-native approach to holding gold — something GLD cannot.

On-chain transfer fees and gas costs must be considered for XAUT, particularly on the Ethereum mainnet. GLD investors avoid these entirely due to custodial off-chain structure. But in environments valuing autonomy and censorship resistance, friction becomes a strategic tradeoff.

Finally, GLD is bound by geographical and jurisdictional constraints affecting accessibility, especially for users outside legacy banking rails. XAUT, accessible through decentralized platforms and major CEXs like Binance, significantly broadens accessibility but still depends on trust in Tether — whose transparency history has been scrutinized in both fiat and crypto markets.

In essence, GLD remains a staple in traditional portfolios, but it’s not interoperable with the decentralized tech stack. XAUT offers full-stack composability at the cost of regulatory opacity and gas inefficiency — a tradeoff that continues to polarize holders depending on whether they value legacy safeguards or crypto-native possibility.

XAUT vs IAU: A Deep Dive into Tokenized Gold vs Traditional Gold ETFs

In the gold-pegged asset space, XAUT (Tether Gold) offers tokenized exposure to physical gold on the blockchain, while IAU (iShares Gold Trust) represents a traditional financial product listed in legacy markets. Though both aim to provide investors with fractional gold ownership, their mechanisms, custody models, and accessibility diverge in substantial ways that matter to a crypto-native audience.

Custody, Trust, and Transparency

IAU is backed by physical gold stored in London vaults and governed by centralized trustees under traditional regulatory frameworks. Access requires intermediaries and KYC/AML processes, limiting utility for decentralized finance (DeFi) applications. Conversely, XAUT resides on-chain, with ownership and movement governed by smart contracts. Tether claims its tokens are backed one-to-one by physical gold held in Swiss vaults, though the verification process remains opaque.

Unlike IAU, which benefits from regular third-party audits and regulatory oversight, XAUT lacks public audit trails that meet crypto-native standards of verifiability — particularly when compared to on-chain proof-of-reserves typical in DeFi systems. This creates a trust vector that doesn't sit well with the decentralization ethos many in crypto prioritize.

Fungibility, Portability, and Composability

IAU operates within the boundaries of traditional finance. Its units are not directly transferable to digital wallets nor composable with DeFi protocols. This limits its use-case exclusively to speculation or hedging within brokerages.

XAUT, however, is an ERC-20 token compatible with Ethereum wallets and smart contracts. It's immediately usable across DeFi platforms, bridges, and lending protocols. This makes it highly compatible with decentralized apps (dApps), especially those leveraging platforms like MyEtherWallet, covered in A Deepdive into MyEtherWallet MEW. It also aligns more directly with blockchain-native solutions around decentralized self-custody and asset tokenization.

Liquidity and Market Integration

IAU boasts deep liquidity across institutional trading desks, ETFs, and retirement accounts. It's integrated into platforms with traditional market depth and spread advantages — but inaccessible to “on-chain” users without fiat onramps.

XAUT offers more limited liquidity, but it's available on decentralized exchanges (DEXs) as well as centralized crypto trading platforms. Users looking to access XAUT can easily set up an account on platforms like Binance, facilitating blockchain-native gold exposure without crossing into TradFi systems.

While IAU serves institutional-grade investors adhering to compliance-heavy processes, XAUT targets the borderless, permissionless ethos of DeFi-native gold allocation — albeit with trade-offs around regulatory credibility and audit transparency.

Tether Gold (XAUT) vs Sprott Physical Gold Trust (PHYS): A Crypto-Native Examination

When comparing Tether Gold (XAUT) to the Sprott Physical Gold Trust (PHYS), the most immediate difference lies in the foundational structure. XAUT is a blockchain-based ERC-20 token that operates on public smart contract infrastructure, while PHYS is a traditional exchange-traded closed-end fund managed by Sprott Asset Management and listed on major securities exchanges. This divergence in architecture has major implications for custody, composability, and utility in on-chain ecosystems.

Custodial and Ownership Structure

PHYS represents allocated physical gold stored securely at the Royal Canadian Mint. However, retail investors do not hold individual bar entitlement or on-chain verifiability. Chain-of-custody is linked to Sprott’s internal accounting and third-party auditing systems, offering no native blockchain integration. In contrast, XAUT embeds digital ownership of specific gold bars on the Ethereum and Tron blockchains. Users can query gold bar details, including serial number and weight, directly via smart contract interfaces, significantly enhancing transparency for blockchain-native investors.

However, XAUT does route its gold bar custody through TG Commodities Limited, raising centralization concerns. If TG operations were interrupted, user assets could become inaccessible. PHYS shares similar trust gatekeeping via Sprott, but this is mirrored in traditional financial settings, often attractive to institutional investors constrained by custodial requirements.

On-Chain Interoperability

XAUT is built for composable DeFi environments. It can be integrated with smart contract protocols, used in yield strategies, staked in DAOs, or transferred peer to peer. This composability is aligned with Ethereum wallet infrastructures like MyEtherWallet. PHYS, on the other hand, is not tokenized and cannot be deployed in DeFi protocols or transferred without interaction with brokerages or centralized exchanges. For crypto-savvy users, this means no interoperability, no atomic swaps, and certainly no dapp integration.

Redemption Mechanics

PHYS offers redemption but only for unitholders holding large positions (a minimum of roughly one "London Good Delivery" bar, around 400 oz). Retail users are effectively excluded from physical gold withdrawal. XAUT, while also imposing a redemption minimum (50 XAUT, or approx. 50 oz), provides more direct redemption clarity via smart contract withdrawal logic, albeit still bound by off-chain logistics.

Despite both products offering gold exposure, PHYS remains an off-chain, security-style representation best suited for traditional market participants. In contrast, XAUT is built with on-chain composability in mind and pairs seamlessly with composable wallets, smart contract vaults, and DEXs. For users navigating tokenized real assets, the choice often hinges on how deeply their asset strategy leverages the DeFi stack. Consider onboarding via Binance for access to XAUT through a DeFi-aligned centralized interface.

Primary criticisms of Tether Gold

Key Criticisms of Tether Gold (XAUT): Centralization, Custody Risks, and Transparency Concerns

Tether Gold (XAUT) positions itself as a crypto-asset backed 1:1 by physical gold stored in Swiss vaults. However, despite its appeal to those seeking a fusion of digital liquidity with tangible backing, several lingering concerns continue to shadow XAUT’s legitimacy within the crypto-native community.

1. Centralized Custodianship and Counterparty Trust

Unlike decentralized stablecoins or synthetic assets, XAUT is entirely custodial. Every token is allegedly backed by allocated London Good Delivery gold bars stored in a centralized facility. However, the full audit trail, frequency of third-party verification, and bar-level traceability remain opaque. This introduces traditional finance-style counterparty risk where token holders must trust Tether Ltd’s internal controls, vault providers, and legal framework.

This stands in contrast to decentralized asset-backed models that emphasize self-custody and cryptographic verifiability. With no publicly accessible smart contract-based mechanism verifying custody, XAUT undermines the blockchain ethos of “don’t trust, verify.”

2. Lack of Public Audits and On-Chain Proofs

Transparency in real-time gold reserves is critically missing from XAUT. While Tether occasionally publishes attestations, there is no continuous on-chain disclosure linking physical bar identifiers with token issuance. The community has repeatedly criticized the absence of up-to-date third-party audits or Merkle Tree-based proofs of reserves that establish 1:1 backing in a provably cryptographic manner.

In the broader discourse around asset-pegged tokens, this lack of transparency has drawn comparisons to other custodial models that unravel due to opaque asset management, as discussed in pieces like Unpacking the Criticisms of Velo Cryptocurrency and Synthetix Under Fire Key Criticisms Explained.

3. Regulatory Arbitrage and Jurisdictional Ambiguity

The legal structure behind XAUT is complex. It involves a British Virgin Islands-based entity (Tether Gold Ltd), partnerships with Swiss vaulting firms, and legal documentation that varies across jurisdictions. This makes enforcement, ownership rights, and dispute resolutions especially difficult compared to on-chain assets governed by smart contracts or well-defined DAO governance.

Given concerns around regulatory arbitrage in other custodial DeFi solutions like those highlighted in Examining the Criticisms of Band Protocol, XAUT's structure may raise red flags for users seeking legal clarity around physical redeemability and cross-border asset protection measures.

4. Redemption Mechanisms and Practical Inaccessibility

XAUT’s redemption model is geared toward large-scale holders. The process to redeem physical gold involves a minimum of 430 XAUT (equivalent to one full gold bar), making physical settlement inaccessible to most retail users. The alternative is selling tokens on a secondary exchange, which reintroduces reliance on custodians and third-party liquidity providers.

For users interested in liquidity with lower friction, platforms like Binance offer trade pairs with XAUT, although this shifts the trust burden to centralized exchanges. You can easily register and explore XAUT markets on Binance.

Founders

Dissecting Tether Gold's Founding Team: Anonymity, Controversy, and Centralized Control

The founding team behind Tether Gold (XAUT) mirrors the structure and philosophy that launched the original Tether (USDT): centralized issuance, opaque leadership, and a heavy reliance on the trust users impart on custodial claims. XAUT does not exist as a decentralized asset. It’s a token representing one troy ounce of gold allegedly held in Swiss vaults—and the team behind it holds the keys to user trust.

Tether Gold is issued by TG Commodities Limited, an entity affiliated with Tether Operations Limited and iFinex Inc., the parent company of Bitfinex. While no traditional "founders" of XAUT have ever been showcased in press or community engagement, the asset is backed by the same individuals who launched and operate the broader Tether ecosystem. This includes Chief Technology Officer Paolo Ardoino and Tether’s General Counsel Stuart Hoegner—figures who have been at the center of regulatory scrutiny, legal battles, and transparency concerns for years.

The specific corporate entity, TG Commodities Limited, is notable for being thinly documented in terms of operational structure and senior leadership. Unlike other tokens with public founders and extensive team profiles (as seen in projects like Meet the Visionaries Behind Golem or Meet the Innovators Behind Nimiq), XAUT’s leadership remains in the background. This lack of visibility may be interpreted either as a deliberate positioning toward institutional neutrality or a function of strategic obfuscation, possibly to reduce regulatory exposure.

As is the case with USDT, operational control over XAUT is centralized. Token issuance and redemption processes are restricted through a gated customer onboarding process, and redemption is only possible in blocks of 50 XAUT (approximately 50 ounces of gold), making retail accessibility a practical barrier. This centralization contrasts with decentralization-oriented projects governed by on-chain mechanisms or DAOs.

Moreover, despite Tether's ongoing involvement in the crypto ecosystem, XAUT's leadership avoids public appearances, formal governance mechanisms, or developer activity in decentralized code repositories—raising persistent concerns about accountability. Notably, there are no meaningful on-chain community governance rights associated with XAUT, in opposition to models discussed in The Overlooked Importance of On-Chain Governance.

For users interacting through Ethereum or TRON wallets, XAUT can be held in non-custodial solutions such as MyEtherWallet, but regardless of custody, ownership remains a promise by TG Commodities—not an enforceable claim on-chain. The founding structure is a closed loop: opaque, centralized, and ultimately trust-based.

Authors comments

This document was made by www.BestDapps.com

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