Tether has an $8 billion gold reserve backing the XAUT Token.

According to the latest news, the CEO of stablecoin issuer Tether revealed in a recent interview that the company has its own vault in Switzerland, currently holding gold worth approximately $8 billion (equivalent to 80 tons). For security reasons, the company has not disclosed the specific location and establishment date of the vault.

Tether executives stated that the company chose to establish its own vault mainly for cost considerations. Paying fees to vault operators commonly used in the precious metals industry is considered too expensive. Currently, Tether has become one of the largest holders of gold globally, aside from banks and nations, with its gold reserves valued similarly to the total value of precious metals and other commodities held by UBS Group.

Gold reserves account for nearly 5% of Tether's total reserves, mainly used to support the issuance of its gold token XAUT and serve as collateral for the stablecoin. XAUT is a digital asset pegged to physical gold, with each token representing 1 ounce of certified refined gold. Currently, XAUT supports Ethereum and Tron networks.

Tether has also launched the Alloy platform, allowing users to use XAUT as collateral to mint the synthetic US dollar stablecoin aUSDT. According to official data, XAUT currently has a circulating market value of approximately 813 million, corresponding to 7.66 tons of gold.

Compared to traditional gold, XAUT has several advantages: easy to transport, easy to divide, available for trading 24/7, easy to redeem, simple to store, and easy to verify. Holding XAUT incurs no custody fees, and users can redeem the tokens for physical gold at any time, provided they meet the minimum redemption amount and related fee requirements.

Currently, multiple mainstream trading platforms support XAUT for spot and margin trading, and some platforms even offer high-leverage perpetual contract trading.

It is worth noting that Tether is not the first institution to launch a gold Token. Previously, the American company Paxos Trust Company issued PAX Gold (PAXG), with each Token also representing 1 ounce of certified gold. PAXG went live on the Ethereum network in 2019 and is regulated by the New York State financial authorities, making it the world's first regulated gold-backed stablecoin.

Overall, Tether is working to promote the adoption and application of XAUT globally, thanks to its recognition, strong asset reserves, and convenient storage methods.