What is XAUT and how does digital gold work?

What is XAUT? XAUT (Tether Gold) is a token backed by physical gold and issued by TG Commodities, S.A. de C.V. One full XAUT represents ownership of one fine troy ounce of physical gold held in London Good Delivery bars in Swiss vaults.

You can buy, transfer, and store XAUT in your own crypto wallet. Its price is tied to the market value of gold, although XAUT can trade at a small premium or discount on exchanges depending on liquidity.

Network support, reserve data, fees, and trading availability were checked on September 24, 2026. Below, we explain how XAUT works, how it differs from physical gold and PAXG, where it can be bought from Ukraine, and how to store it in your own wallet.

What is XAUT and how does it work?

TG Commodities, S.A. de C.V. issues XAUT after the corresponding amount of physical gold has been accepted by the custodian. One full XAUT represents ownership of one fine troy ounce of gold held in London Good Delivery bars.

The latest published reserve report, independently assured by BDO as of June 30, 2026, lists 707,747.139 fine troy ounces of gold, or about 22.01 metric tonnes. At that date, 707,747.09 XAUT had been issued, of which 612,823.66 XAUT had been sold to customers, while the total market value of the gold reserve was approximately $2.837 billion. The report confirms the figures only as of that specific date, so the current value of the reserve changes with the gold price.

The gold is stored in Switzerland. The same report lists 1,759 large bars weighing roughly 12.5 kg each, as well as smaller bars. In other words, XAUT does not merely track the price of gold: under the issuer’s model, the token represents an interest in a specific physical gold reserve.

Which networks does XAUT run on?

As of September 24, 2026, Tether’s official Supported Protocols page lists XAUT contracts on two networks:

• Ethereum: 0x68749665FF8D2d112Fa859AA293F07A622782F38
• BNB Smart Chain: 0x21cAef8A43163Eea865baeE23b9C2E327696A3bf

XAUT used to be associated almost exclusively with Ethereum, but in March 2026 Tether launched XAUT on BNB Chain. There is also a separate product called XAUT0, an omnichain version of tokenized gold designed for use across other networks. That does not mean the same XAUT contract can be sent between blockchains without checking the network first.

Before withdrawing from an exchange, always verify the asset name, network, and contract address. This is especially important if the platform shows XAUT0 or another cross-chain version instead of standard XAUT.

Can you transfer, store, and sell XAUT?

• Store it: in your own wallet, provided the wallet supports the relevant network and token. For XAUT on Ethereum, fees are paid in ETH; on BNB Smart Chain, you need BNB.
• Transfer it: like a regular token on the relevant network. Tether does not charge a separate fee for secondary on-chain transfers, but you still pay the network fee, or gas.
• Buy and sell it: on exchanges or through on-chain services where there is liquidity for the specific version of the token.

You do not have to leave XAUT on an exchange for long-term storage. If you want direct control over your private keys, you can withdraw the token to a hardware wallet. We compare the two approaches in more detail in Hardware Wallet vs Exchange: Where Is It Actually Safer to Store Crypto?

Hardware wallets for XAUT

For XAUT on Ethereum, compatible options include Ledger Flex and Trezor Safe 5. Ledger officially lists support for Tether Gold, while Trezor lists XAUT on Ethereum for Safe 5. You can find other models in our hardware wallet category or in our 2026 hardware wallet comparison.

If you plan to hold XAUT on BNB Smart Chain or use XAUT0, check support for that exact network and token in the wallet app before transferring funds. Ethereum support does not automatically mean support for every version of XAUT.

How to redeem XAUT for physical gold

Tether Gold’s rules allow XAUT to be redeemed for physical gold, but this is not a way to exchange a few tokens for a small retail bar. Direct redemption through the issuer requires a verified account, and physical redemption is based on a full London Good Delivery bar.

London Good Delivery bars do not have a fixed weight of exactly 400 troy ounces. Tether Gold may ask you to deposit 430 XAUT, after which the final token amount is adjusted to the actual weight and fineness of the allocated bar. If fewer tokens are required, the remainder is returned; if more are required, you must cover the difference with additional XAUT or fiat in accordance with the issuer’s rules.

Tether Gold’s official whitepaper states a minimum direct purchase of 50 XAUT with a 0.25% issuance fee, while physical redemption is described at roughly 430 XAUT with a 0.25% fee plus costs associated with delivery or selling the bar. The issuer can change these terms, so check the current Tether Gold terms in your verified account before a direct purchase or redemption. Regular on-chain transfers also require the blockchain’s network fee.

How XAUT differs from physical gold

• Physical gold: you own the metal directly, but you also handle the purchase, authenticity checks, storage, and eventual sale yourself.
• XAUT: your interest in gold is represented by a token that is easier to transfer and hold in a crypto wallet. In return, you depend on the issuer, the gold custodian, the redemption rules, and the blockchain infrastructure working as intended.

What is XAUT used for?

Gold exposure and diversification

XAUT gives you exposure to gold without requiring you to store a physical bar yourself. Gold is often used as part of a diversified portfolio, but its price can still fall, so XAUT does not guarantee protection from inflation or losses.

An alternative to fiat-backed stablecoins

Stablecoins such as USDT are generally designed to track fiat currencies, while XAUT is linked to gold. That makes it a different type of asset and potentially useful if you do not want the entire crypto portion of your portfolio tied to the US dollar.

Keeping gold exposure inside the crypto ecosystem

If you already use exchanges, wallets, and on-chain services, XAUT lets you gain exposure to gold without leaving the crypto ecosystem. The risk does not disappear, however: alongside movements in the gold price, you also take on issuer, network, and service-provider risk.

Moving “gold” quickly across borders

Physical gold is harder to transfer quickly to another person or move between services. XAUT can be sent like a regular blockchain token, with transaction speed and cost depending on the network you use.

Advantages of XAUT

• Gold in a digital format: you do not need to buy, transport, and store a physical bar yourself.
• Blockchain transfers: XAUT can be sent between compatible addresses without physically moving gold.
• Fractional ownership: on the secondary market, you can buy and sell fractions of XAUT, so you do not have to purchase a full troy ounce.
• Self-custody: you can withdraw the token from an exchange to your own compatible wallet and control the private keys yourself.

Risks of XAUT

• Issuer and custodian risk: the token relies on TG Commodities’ legal structure and the physical custody of the gold. BDO’s quarterly report confirms reserves as of a specific date, but it does not eliminate these risks entirely.
• Physical redemption requirements: redemption requires KYC, enough XAUT for a full bar, and any additional costs set out in Tether Gold’s current terms.
• Network risk: transfers require the native coin of the network to pay gas. If you use XAUT0 or other cross-chain infrastructure, bridge and smart-contract risks are added as well.
• Exchange or service risk: if XAUT stays on a centralized platform, access depends on that platform’s rules, limits, security, and continued operation.
• Market risk: XAUT is linked to gold, and gold prices can rise or fall. On individual venues, XAUT may also trade slightly above or below the spot gold value because of liquidity and spreads.

XAUT vs PAXG: how the gold tokens differ

XAU₮ (Tether Gold)

Issuer: TG Commodities, S.A. de C.V., registered in El Salvador and authorized there as a Stablecoin Issuer and Digital Assets Service Provider.
Backing: 1 XAUT represents one fine troy ounce of physical London Good Delivery gold held in Swiss vaults.
Networks: official XAUT contracts are currently listed for Ethereum and BNB Smart Chain.
Reserve verification: Tether Gold publishes reserve information and provides a Gold Allocation Lookup that can be used to check the gold allocation associated with an on-chain address.
Physical redemption: available through a verified account for a full bar, subject to the current fee schedule and issuer terms.

PAXG (Pax Gold)

Issuer: Paxos Trust Company, N.A., a US national trust bank supervised by the OCC.
Backing: 1 PAXG represents one fine troy ounce of physical London Good Delivery gold.
Networks: Ethereum and, since June 2026, Solana.
Reserve verification: Paxos publishes monthly reports and provides a Gold Allocation Lookup for checking the serial number, weight, and other bar details associated with a wallet address.
Physical redemption: available to verified customers; redemption for a London Good Delivery bar requires at least 430 PAXG under Paxos’ stated terms.

XAUT or PAXG? Both provide on-chain exposure to physical gold, but they differ in issuer, regulatory structure, supported networks, direct-purchase rules, and redemption terms. Those differences should be evaluated against your own use case rather than treating the issuer’s jurisdiction alone as a measure of safety.

Other gold-backed tokens

• KAU (Kinesis): one KAU represents one gram of physical gold; the service allows physical redemption under its own minimums and fee schedule.
• VRO (VeraOne): one VRO represents one gram of LBMA-standard gold; the token runs on Ethereum as an ERC-20 asset, and the service describes redemption through a verified account.

Before buying a less liquid gold token, check more than the backing. Look at the actual trading pairs, volume, withdrawal terms, and support in your wallet.

Where can you buy XAUT from Ukraine?

As of September 24, 2026, XAUT is traded on several major centralized exchanges. For users in Ukraine, access to a particular product can depend on the country set on the account, KYC status, the exchange’s legal entity, and local restrictions. Before depositing funds, check that XAUT trading and withdrawals are available in your own verified account.

Exchanges with XAUT spot trading

• OKX: XAUT/USDT spot pair.
• Bybit: XAUT/USDT spot pair.
• Bitget: XAUT/USDT spot pair.
• MEXC: the spot market is shown as GOLD(XAUT)/USDT; MEXC also has a Ukraine-specific XAUT purchase page.
• Gate: XAUT/USDT spot pair.
• Kraken: XAUT is available for purchase and trading; available funding methods depend on the account region.
• KuCoin: XAUT/USDT spot pair.

For a quick comparison of venues, pairs, and trading volume, you can also check the Markets tab on CoinGecko’s XAUT page. Before buying, however, verify the current pair, fees, and withdrawal availability directly on the exchange.

XAUT’s market capitalization changes with the gold price and circulating supply. When checked on September 24, 2026, the official Tether Finance page showed an XAU₮ market cap of about $3.04 billion. Separately, Tether Gold’s latest formal reserve report, dated June 30, 2026, valued the entire gold reserve at approximately $2.837 billion. These figures measure different things on different dates: use the latest reserve report to verify backing and current Tether or market data for live market capitalization.

How to buy and safely store XAUT

1. Decide where you will store it. If you actively trade XAUT, keeping it on an exchange may be practical. For longer-term storage, you can withdraw it to your own hardware wallet, provided the device and wallet app support the network you plan to use.
2. Check the withdrawal network. Official XAUT currently has contracts on Ethereum and BNB Smart Chain. Do not choose a network simply because it is cheaper; first confirm that your wallet supports that exact token on that exact network.
3. Verify the contract address. On Ethereum, it is 0x68749665FF8D2d112Fa859AA293F07A622782F38. On BNB Smart Chain, it is 0x21cAef8A43163Eea865baeE23b9C2E327696A3bf. Always compare the current addresses with Tether’s official page.
4. Keep the network’s native coin for fees. XAUT on Ethereum requires ETH, while XAUT on BNB Smart Chain requires BNB. Without the native coin, you will not be able to send the token from your own wallet.
5. Use a test transaction for larger amounts. Send a small amount of XAUT first, confirm that it arrives on the correct network, and only then transfer the main balance.

5 things to know about XAUT

1. One XAUT represents one fine troy ounce of gold. It is an interest in physical gold held in Tether Gold’s reserve, not merely an algorithmic price peg.
2. XAUT is currently issued on Ethereum and BNB Smart Chain. XAUT0 exists separately for use across other networks. Always verify the network and contract before withdrawing.
3. Buying directly from the issuer is different from buying on an exchange. Tether Gold’s official whitepaper lists KYC, a 50 XAUT minimum, and a 0.25% fee for direct purchases; confirm the issuer’s current terms before transacting. Secondary-market purchases are subject to the exchange’s own minimums, fees, and account rules.
4. Physical redemption is designed for large amounts. Tether Gold may request 430 XAUT for a full London Good Delivery bar and then adjust the final amount to the bar’s actual weight.
5. You can self-custody XAUT. For Ethereum, Ledger and Trezor both explicitly list XAUT support. If you use BNB Smart Chain or XAUT0, check compatibility with the specific wallet and app separately.

Who is XAUT for, and who may prefer something else?

When XAUT may make sense

• If you already use crypto wallets and want exposure to gold without storing a physical bar yourself.
• If you want to be able to transfer the asset on-chain and keep it in your own wallet.
• If you understand the issuer, network, and redemption risks and are prepared to check them before making a large purchase.

When physical gold may be a better fit

• If physical possession of the metal matters to you and you do not want a token or blockchain layer between you and the asset.
• If you do not plan to move the asset often and are comfortable handling purchase, authenticity checks, and storage yourself.
• If you do not want to depend on an issuer’s rules or token-redemption procedures.

How XAUT differs from Bitcoin

Bitcoin and XAUT are designed for different purposes. XAUT’s value follows gold and the token depends on an issuer and a physical reserve. Bitcoin has no issuer and no gold backing, while its price is determined by a separate market and can be significantly more volatile. Calling both assets “digital gold” does not make them equivalent.

Conclusion

XAUT (Tether Gold) lets you own gold in tokenized form and keep the token in your own crypto wallet. One full XAUT represents one fine troy ounce of physical gold, while the issuer’s current official contracts operate on Ethereum and BNB Smart Chain.

The main advantage over physical gold is easier transfer and self-custody of the token. In exchange, you take on additional risks involving the issuer, reserve custodian, blockchain, exchange, or other service used to buy and transfer XAUT. Before making a large purchase, check the latest reserve report, current fees, withdrawal network, and contract address.

If your goal is to gain gold exposure inside the crypto ecosystem, XAUT is one of the available tools. If physical possession without reliance on a token issuer matters more to you, that is a different use case and should be compared with buying physical gold directly.

Sources

• Tether: Supported Protocols and Integration Guidelines
• Tether Finance: live XAU₮ market capitalization
• Tether Gold Whitepaper: direct purchases, redemption, and fees
• BDO: Tether Gold Reserves Report as of June 30, 2026
• Tether Gold: Terms of Service
• Tether: XAUT launch on BNB Chain
• USDT0 Network: XAUT0 technical documentation
• Ledger: Tether Gold wallet support
• Trezor: Tether Gold support
• Paxos: Pax Gold and PAXG on Solana