XAUT Token: Overview, Price & Outlook
XAUT (Tether Gold) is a token whose issuer holds physical gold against it: one token corresponds to one troy ounce stored in Switzerland.
Key Takeaways
- One XAUT corresponds to one troy ounce of London Good Delivery gold held in Switzerland. The issuer is TG Commodities, S.A. de C.V., an El Salvador entity within the Tether group — so the arrangement carries issuer risk, not just gold price risk
- Verification works at an aggregate level. Tether publishes vault and bar data, but an individual holder cannot tie a specific token to a specific bar — a distinction the original version of this article contradicted itself on
- Redemption for physical metal is possible only under strict conditions: full-bar increments — currently around 430 XAUT — and delivery or collection in Switzerland
- XAUT is registered as a Stablecoin Issuer under El Salvador's Digital Asset Issuance Law — a domestic regulatory framework rather than oversight from a major international financial regulator, unlike PAXG, which operates under NYDFS oversight in New York. This is the single largest structural difference between the two
What XAUT Is
XAUT is a token issued by TG Commodities Limited under the Tether brand, backed by physical gold rather than fiat currency. Each token corresponds to one troy ounce meeting the London Good Delivery standard, held in a Swiss vault. It exists as an ERC-20 token on Ethereum, a TRC-20 token on Tron, and — following a March 2026 expansion — on BNB Chain and several additional networks; always confirm the current full list and select the correct network before sending funds. Sending it through an unsupported network may result in loss of access to the assets.
What Ownership Actually Means
Holding XAUT does not normally mean that an entire gold bar is assigned exclusively to one holder. Under Tether Gold’s current structure, each token represents an undivided ownership interest in one fine troy ounce of gold on a specified London Good Delivery bar held by a custodian on behalf of token holders. Tether Gold’s lookup service can show the specific bar or bars associated with an on-chain address, including their serial numbers, weight, and purity. This allocation may be recalculated when tokens move between addresses.
Physical redemption is available through Tether Gold’s primary-market process for KYC-verified customers and must be completed in full-bar increments. The 50 XAUT threshold applies to direct purchases from Tether Gold, not to physical redemption. Tether currently advises depositing approximately 430 XAUT to ensure that the balance covers one complete bar, although the actual amount depends on the bar’s weight. Physical delivery is limited to Switzerland and involves fees and logistics, so XAUT should not be described as gold that any holder can convert into metal on demand.
How XAUT Behaves
XAUT tracks the spot price of gold, so its behavior is the behavior of the gold market: it moves with monetary policy, currency strength, and geopolitical conditions, and it can fall as well as rise. Two token-specific points modify that picture. First, XAUT trades at a premium to spot gold, since issuer fees are built into the price. Second, its liquidity and market capitalization are smaller than PAXG’s according to market data providers, which affects execution on larger trades.
XAUT and Other Gold-Backed Tokens
Gold-backed tokens may appear similar because they all refer to physical metal, but their legal structures, reserve models, storage arrangements, redemption terms, and regulatory frameworks differ.
| Token | Issuer | Gold backing | Storage | Regulatory status / registration | Minimum direct purchase |
|---|---|---|---|---|---|
| XAUT | TG Commodities, S.A. de C.V., an El Salvador company within the Tether Group | One XAUT represents ownership of one fine troy ounce of gold on a London Good Delivery bar | Gold reserves are vaulted in Switzerland | Authorized in El Salvador as a Stablecoin Issuer and Digital Asset Service Provider under the Digital Asset Issuance Law. XAUT has also been recognized as an Accepted Spot Commodity in ADGM, although this designation applies to its availability through appropriately authorized ADGM firms rather than placing the issuer under ADGM prudential supervision | 50 XAUT when purchasing directly from Tether Gold; trading platforms may set lower limits |
| PAXG | Paxos Trust Company, N.A. | One PAXG represents one fine troy ounce of allocated London Good Delivery gold | LBMA-approved vaults in London | Issued by a U.S. national trust bank under federal OCC supervision; PAXG issuance has specific OCC approval | 0.01 PAXG through Paxos; third-party platforms may apply their own limits |
| GPRO | IPMB Bullion Limited, registered in the Marshall Islands | Each GPRO is described as backed by one gram of gold doré, also described by IPMB as 22-carat gold. GPRO is not pegged to the gold price and may trade above or below the value of its backing | IPMB describes the gold as held in audited, LBMA-standard vaults at approved locations globally, without identifying one storage jurisdiction | IPMB states that it has Czech VASP registration, but its public materials do not clearly establish whether that registration belongs to the Marshall Islands entity issuing GPRO or another group company | No uniform retail minimum is stated on the public product pages reviewed. The separately advertised OTC offer has a minimum of $200,000 |
| CGO | ComTech FZCO, incorporated in the UAE and registered in the Dubai Airport Free Zone | One CGO represents one gram of allocated physical gold with a stated purity of 999.9 | Segregated and insured TransGuard vault accounts in Dubai, UAE | UAE free-zone incorporation and DAFZA registration. This is a corporate and operating framework rather than prudential supervision equivalent to that applied to a U.S. national trust bank | 0.01 CGO when purchased directly through ComTech Gold, according to its current FAQ; exchange limits may differ |
Risks Specific to Gold-Backed Tokens
- Issuer risk. The token is a claim on a company. Its value depends on that company holding the gold it says it holds and honoring redemptions — which is a different risk from holding metal directly
- Regulatory risk. Asset-backed tokens are under increasing scrutiny, and XAUT operates outside major-regulator supervision
- Gold price risk. Gold is not a stable asset; it has extended drawdowns, and a token tracking it inherits them
- Premium and fees. XAUT trades above spot, so the entry price already includes a cost that physical or ETF exposure may not
- Custody risk. As with any token, loss of keys or failure of the platform holding it is a distinct failure mode
- Practical redemption limits. The 50-ounce minimum and Switzerland-only delivery mean the physical claim is not accessible to most holders
How to Buy and Store XAUT
XAUT can be purchased either directly from Tether Gold or through a crypto platform that lists the token. Direct purchases require account verification, settlement in US dollars, and a minimum order of 50 XAUT. Exchanges and wallet services may allow smaller purchases, but their fees, spreads, limits, and regional availability differ.
Before buying or transferring XAUT, confirm the token contract and select the correct network. It exists as an ERC-20 token on Ethereum, a TRC-20 token on Tron, and — following a March 2026 expansion — on BNB Chain and several additional networks; always confirm the current full list and select the correct network before sending funds. Sending it through an unsupported network may result in loss of access to the assets.
XAUT can be held through a custodial service or in a compatible self-custody wallet. A custodial provider manages private keys and account recovery, while self-custody leaves security, backups, and seed-phrase protection to the holder. Keep enough ETH or BNB to cover network fees, use a small test transfer for a new address, and review Tether’s reserve reports and bar lookup data when assessing long-term storage.
FAQ
How does XAUT differ from physical gold?
XAUT is a token representing a claim on gold held by an issuer, transferable like any other token. Physical gold is held directly, with no issuer between you and the metal, but requires storage and carries transaction friction. The trade-off is between counterparty exposure and physical handling.
How reliable is the issuer?
TG Commodities, S.A. de C.V. operates within the Tether group and is registered under El Salvador's Digital Asset Issuance Law. Tether is among the largest companies in the sector by assets under management, and its reserve reporting has been the subject of regulatory attention over the years — which is context worth having when assessing an issuer-backed claim. Reliability assessments are yours to make from primary sources: the issuer’s attestations and its regulatory history.
How can I verify the gold backing?
Tether publishes vault and bar information on its transparency page. Note the limitation: verification covers aggregate holdings, and an individual token cannot be matched to a specific bar.
Can XAUT be redeemed for physical gold?
Yes, subject to conditions: full-bar increments — currently around 430 XAUT — processing through the issuer's redemption system, and delivery or collection in Switzerland. Verify current terms with the issuer before relying on this.
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