Tokenized Gold is coming to Aave.Soon you’ll be able to earn yield on Tether’s XAUT and borrow against it.Last cycle, the only exit was selling into USD stables (and fiat). But with RWAs taking off, you won’t need to leave onchain anymore.Major indexes, EUR/JPY etc. stables, and commodities like gold will give enough diversification directly onchain. ...

RT Token Terminal 📊 (@tokenterminal)ICYMI: @Tether_to has tokenized over $1.2 billion worth of gold on @ethereum.XAUT serves users that want to access a non-fiat store of value onchain.🇨🇭⛰️ A Swiss Gold Vault in your Pocket. https://t.co/mE6sMzGU0A ...

Tokenization of Gold - Tether 在以太坊上tokenized 超过 12 亿美元的黄金 [1] - XAUT 为希望在链上访问非法定价值存储的用户提供服务 [2] Value Proposition - 提供了一种瑞士黄金金库的数字化访问方式 [3]

RT Token Terminal 📊 (@tokenterminal)ICYMI: @Tether_to's $XAUT added ~$400 million in market cap over the past week. https://t.co/pq3HIDnYH4 ...

ICYMI: @Tether_to's $XAUT added ~$400 million in market cap over the past week. https://t.co/pq3HIDnYH4 ...

ICYMI:@Tether_to has tokenized over $800 million worth of gold on @ethereum.XAUT serves users that want to access a non-fiat store of value onchain. https://t.co/3wAqozAATh ...

Group 1: Tether Holdings SA Overview - Tether Holdings SA, the issuer of the largest stablecoin, has a vault in Switzerland storing $8 billion worth of gold reserves and plans to increase this amount [2] - The company currently holds nearly 80 tons of gold, making it one of the largest non-bank and non-state holders of gold globally [2] - Gold constitutes nearly 5% of Tether's reserves, according to the latest report released in March [2] Group 2: Market Position and Regulatory Concerns - As of July 9, the total supply of stablecoins surpassed $250 billion, with Tether's USDT accounting for over 62% of the market share [3] - Regulatory bodies are increasingly concerned about the rapid growth of stablecoins, particularly regarding Tether's reserve status and the potential for significant capital flow outside the formal banking system [3] - New stablecoin regulations typically do not recognize gold and other alternative assets as suitable backing for digital dollars, which may require Tether to sell its gold reserves to comply with these regulations [3] Group 3: Gold-Backed Token and Cost Considerations - In addition to USDT, Tether has issued a gold-backed token, XAUT, which is backed by one ounce of gold per token, with a total issuance equivalent to 7.7 tons of gold or $819 million [4] - The decision to maintain its own vault instead of using third-party vault operators is primarily cost-driven, as managing a vault can become cheaper with scale [4] - Gold prices have increased by approximately 25% this year, driven by investor demand for safe-haven assets amid geopolitical tensions and trade wars [4]

Core Viewpoint - Tether has established a vault in Switzerland to hold up to $8 billion (approximately 80 tons) of gold reserves, indicating a strategic shift towards gold as a safer asset compared to fiat currencies [1] Group 1: Company Strategy - Tether's CEO, Paolo Ardoino, believes that gold is logically safer than any national currency, especially in light of rising concerns over U.S. debt [1] - The company plans to expand its gold asset holdings, reflecting a proactive approach to asset management [1] Group 2: Product Offerings - In addition to its stablecoin USDT, Tether has launched a gold-backed token, XAUT, which is supported by 1 ounce of physical gold per token [1] - Currently, the total issuance of XAUT is equivalent to 7.7 tons of gold, valued at approximately $819 million, although this remains significantly lower than the liquidity of gold ETFs, which hold nearly 950 tons of gold [1]

Core Viewpoint - Tether Holdings SA has established its own vault in Switzerland to store approximately $8 billion worth of gold reserves, emphasizing that gold is logically "safer than any national sovereign currency" [1][4]. Group 1: Company Overview - Tether currently holds nearly 80 tons of gold, making it one of the largest holders of gold globally, alongside major banks and sovereign nations [1]. - The company's gold reserves are roughly equivalent to the total value of precious metals and other commodities held by UBS Group AG, accounting for nearly 5% of Tether's overall reserves [1][2]. - Tether issues the stablecoin USDT, which aims to maintain a 1:1 value with the US dollar, with a current circulation of approximately $159 billion [1]. Group 2: Market Context - The explosive growth of stablecoins has raised concerns among regulators and law enforcement, particularly regarding Tether's large scale and past questions about its reserve status [2]. - Stablecoins are digital currencies that maintain stable value by being pegged to core reserve assets like the US dollar, euro, or gold, and are becoming mainstream assets in the global financial market [2]. Group 3: Regulatory Environment - Recent regulations in the EU and proposed legislation in the US typically exclude gold and other alternative assets as suitable backing for stablecoins, allowing only sovereign cash and cash equivalents [3]. - If Tether aims to gain legal authorization in these markets, it may be required to sell the gold used to support USDT [3]. Group 4: Gold Market Insights - The price of gold has increased by approximately 25% this year, driven by investor demand for hedging against geopolitical tensions and trade wars [4]. - Central banks and sovereign institutions have shown strong purchasing demand for gold, contributing to the rising prices [4][5]. Group 5: Operational Strategy - Tether has opted to own its vault rather than using common vault operators in the precious metals industry, citing cost considerations [5]. - The company believes that as the scale of its gold-backed tokens increases, owning its vault will ultimately reduce gold storage costs significantly [5].

Core Insights - Tether's gold-backed stablecoin XAUT has surpassed a market capitalization of $820 million, supported by over 246,000 ounces of physical gold, indicating a rapid acceleration in the trend of gold tokenization [1][8] - Despite the growth in market cap, on-chain adoption remains low, with only about 8,000 addresses holding XAUT, and Tether and Binance controlling approximately 60% of the supply [1][6] - The decentralized finance (DeFi) ecosystem faces challenges and opportunities in promoting the widespread adoption of gold assets, with platforms like XBIT aiming to enhance liquidity and user engagement [1][5] Market Dynamics - The rise of XAUT is attributed to multiple macroeconomic factors, including geopolitical instability, high global inflation, negative real yields, and declining trust in fiat currencies, which have collectively increased the demand for gold as a safe-haven asset [3][8] - XAUT's liquidity on major DeFi platforms is gradually improving but has not yet reached a threshold for mass adoption, with Uniswap V3's active liquidity pool for XAUT at approximately $2.2 million and Curve's XAUT/PAXG pool at around $1.1 million [3][8] Institutional Interest - U.S. institutions are actively seeking gold-backed digital assets as part of diversified investment portfolios, with the launch of XAUT further stimulating this demand [4][5] - Hyperliquid has integrated XAUT on its platform, marking it as the first tradable gold token asset in its spot market, which is seen as a significant step towards mainstreaming gold tokens [4][5] Technological Integration - The integration of LayerZero's LZCompose functionality allows seamless interaction between HyperEVM and HyperCore, enabling users to trade, lend, and bridge cross-chain assets around the clock [5] - DeFi protocols like Fluid and Aave are beginning to incorporate XAUT, which is expected to enhance liquidity and provide lending functionalities, potentially attracting long-term investors [5][8] Future Outlook - The uneven distribution of XAUT holdings, with a significant concentration among a few large holders, reflects the limitations of the early adoption phase [6][8] - As more platforms join the ecosystem and provide liquidity incentives, user participation is expected to increase, with U.S. markets responding positively to gold tokens [6][8] - The ongoing economic uncertainty and potential further declines in real yields may lead to explosive growth for assets like XAUT, as they become more mainstream [8]