Tether's 20 Billion Dollar Gold Reserve Becomes a Collateralized Credit System

Tether, the world's largest stablecoin issuer, has become one of the largest private gold owners in global finance over the past year. While the company has a direct and indirect exposure of approximately 141 billion dollars to the US Treasury, the size of its deposits reached 20 billion dollars, together with the 154 metric tons of physical gold it added to its reserves.

This massive amount of gold places Tether in a position comparable to central banks on a global scale. If the company were a central bank, its gold reserves would nearly place it in the top 20 worldwide. While a portion of this gold stock backs USDT reserves, approximately 22 tons represent a tokenized gold product called XAUT, which is stored in Swiss vaults.

This massive acquired gold reserve has now started to be used for credit financing. The crypto lending platform Ledn will accept XAUT tokens as collateral on its platform and offer loans to users in USDT. Thus, users will have the opportunity to benefit from the fast and seamless nature of the crypto ecosystem while accessing liquidity without selling their gold assets.