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What is XAU₮?

Learn how the token backed by physical gold works.

Written by Armando

XAU₮, also known as Tether Gold, is a digital token backed by real physical gold. Each XAU₮ represents one troy ounce of gold held securely.

Holding XAU₮ means owning gold in a digital format, without having to buy it, store it, or pay for custody.

How does it work? 🤔

XAU₮ is issued by Tether (through TG Commodities), the same company behind USD₮. For every token in circulation, there is a corresponding ounce of gold backing it.

XAU₮'s price closely tracks the international gold market (the spot price per ounce). When gold goes up, XAU₮ tends to go up; when gold falls, XAU₮ falls.

👉 XAU₮ is not a stablecoin: its price is not fixed, it moves with the gold market.

Benefits of XAU₮

✅ Simple gold exposure: no physical gold to buy or store, and no custody fees.

✅ Fractional: you can buy gold in fractions, starting from 1 USD₮ or the equivalent in other currencies.

✅ Diversification: gold is commonly used as a store of value alongside other assets.

✅ Transferable: as a digital token, it can be transferred and traded like any crypto, 24/7.

What to keep in mind

  • The price varies. Your XAU₮'s value follows the gold market, which can go up or down.

  • It is not a fixed-income investment. XAU₮ does not pay interest and does not guarantee returns.

  • Issuer risk. The backing depends on Tether/TG Commodities as the custodian of the gold.

👉 Want to learn more about XAU₮? Visit the official Tether website: gold.tether.to.

This article is for informational purposes only and does not replace professional financial advice.

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