XAUt token represents ownership of 1 troy ounce of physical gold

Every XAUt token confers direct legal ownership of one fine troy ounce of allocated physical gold, secured within specialized vaults. This 1:1 backing mechanism represents a fundamental departure from traditional cryptocurrency models, as each token is anchored to London Good Delivery standard gold—the internationally recognized benchmark for precious metals quality. The divisibility of XAUt extends to six decimal places, enabling micro-investments that democratize precious metals access for retail investors.

Currently, Tether Gold maintains a circulating supply of 522,089.3 tokens, representing approximately 522,089 troy ounces of physical gold worth over $2.19 billion as of December 2025. This substantial market capitalization demonstrates institutional confidence in tokenized precious metals. Unlike traditional gold investments requiring storage fees, insurance premiums, and limited trading hours, XAUt tokens facilitate 24/7 trading on cryptocurrency exchanges while maintaining full redemption rights for physical gold. The transparency infrastructure allows investors to verify gold reserves backing their holdings, establishing accountability standards absent in conventional commodity markets. This combination of tangible asset backing with blockchain efficiency creates a compelling proposition for investors seeking stable-value alternatives to volatile digital assets.

XAUt has a fixed supply of 522,090 tokens with no inflation mechanism

Tether Gold (XAUt) distinguishes itself through a carefully engineered tokenomics structure that prioritizes stability and scarcity. The token maintains a fixed supply of 522,089 units, a deliberate design choice that eliminates inflationary pressures inherent in many cryptocurrency projects. This immutable supply cap means no additional XAUt tokens can be created through minting, fundamentally differentiating it from conventional stablecoins or inflationary cryptocurrencies.

The significance of this fixed supply becomes apparent when examining market dynamics. Each XAUt token represents exactly one troy ounce of London-qualified gold held in secure vaults, creating a one-to-one relationship between circulating tokens and physical assets. This backing mechanism transforms XAUt into a deflationary asset by design—as demand increases while supply remains constant, the token's value proposition strengthens rather than dilutes.

The absence of an inflation mechanism provides investors with certainty regarding long-term value preservation. Unlike fiat currencies or inflationary cryptocurrencies that experience purchasing power erosion, XAUt holders maintain consistent exposure to gold's intrinsic worth. This structural integrity makes Tether Gold particularly attractive for institutions and individuals seeking exposure to precious metals without traditional storage complications or counterparty risks associated with physical gold ownership.

XAUt does not have a token burning mechanism or governance rights

XAUt Token Structure and Governance Model

Unlike many modern cryptocurrency projects, XAUt operates under a fundamentally different framework that prioritizes commodity backing over decentralized governance mechanisms. The token structure reflects Tether Gold's centralized approach to asset management and control.

XAUt holders do not possess governance rights or voting privileges over protocol decisions. This centralized governance model means participants cannot influence platform upgrades, fee structures, or strategic direction. The decision-making authority remains with TG Commodities Limited, the entity responsible for managing gold reserves and token issuance.

Similarly, XAUt does not incorporate a token burning mechanism within its primary functionality. However, this distinction becomes important when examining related developments. XAU₮0, an innovative cross-chain variant built on LayerZero's Omnichain Fungible Token standard, does utilize burning for its technical infrastructure. When cross-chain transfers occur with XAU₮0, tokens are burned on the source blockchain and subsequently minted on the destination chain, creating unified supply management across multiple networks.

This architectural difference highlights XAUt's positioning as a commodity-backed stablecoin rather than a governance token. With a current circulating supply of 522,089.3 tokens and a market capitalization of $2.197 billion as of December 2025, the token maintains value through physical gold backing rather than tokenomic incentives like burning or governance participation, distinguishing it from decentralized finance protocols.

FAQ

What is the xaut coin?

XAUT is a digital token by Tether Limited that represents physical gold, combining blockchain efficiency with gold exposure. As of 2025, it remains a stable asset in the crypto market.

Is xaut reliable?

Yes, XAUT is reliable. It's backed by physical gold, managed with strong asset practices, and committed to transparency. Tether's reputation further enhances its stability and trustworthiness.

Is xaut available on Binance?

No, XAUT is not currently available on Binance. It is not listed on the exchange as of December 8, 2025.

Is xaut the same as XAU?

No, XAUT and XAU are not the same. XAUT is a digital token backed by physical gold, with each XAUT representing one troy ounce of gold held in reserve. XAU typically refers to gold in trading terms.