Tether holds $8 billion in gold reserves, supporting the development of XAUT Token.

Recently, Tether's CEO Paolo Ardoino revealed that the company has its own vault in Switzerland, currently holding gold worth 8 billion USD (approximately 80 tons). For security reasons, the company did not disclose the specific location and establishment time of the vault.

Ardoino stated that Tether decided to establish its own vault mainly due to cost considerations. Paying fees to vault operators commonly used in the precious metals industry is an expensive expense. This makes Tether one of the largest holders of gold in the world, apart from banks and sovereign nations. The value of the gold it holds is comparable to the total value of precious metals and other commodities held by UBS Group.

Gold currently accounts for nearly 5% of Tether's total reserves, primarily used to support its gold token XAUT and serve as collateral for the stablecoin. XAUT is a stablecoin issued by a Tether subsidiary that is backed by physical gold, with each XAUT token representing 1 ounce of London Bullion Market Association (LBMA) certified refined gold. Currently, XAUT supports the Ethereum and TRON networks.

Tether has also launched its own platform, allowing users to use XAUT as collateral to mint new synthetic USD stablecoins. According to official data, the current circulating market value of XAUT is approximately 813 million yuan, corresponding to 7.66 tons of gold, which is equivalent to 644 standard "London Good Delivery" gold bars.

Compared to traditional gold, XAUT has the inherent advantages of cryptocurrency: easy to transport, easy to divide, available for trading 24/7, easy to exchange, simple to store, and easy to verify. Holding XAUT does not require paying custody fees, and holders can exchange XAUT for physical gold at any time, but they must meet certain minimum redemption amounts and related fees.

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

It is worth noting that gold on the blockchain is not pioneered by Tether. PAX Gold (PAXG) is a digital asset linked to physical gold issued by a US fintech company, officially launched on the Ethereum network in 2019, and is the world's first fully regulated gold-backed stablecoin. Currently, PAXG has a market capitalization of approximately $843 million, primarily targeting US customers.

Overall, Tether is gradually shifting its business focus to emerging markets. The company's long-accumulated reputation, strong asset reserves, and convenient storage methods have laid the foundation for the global development of XAUT.