What is Tether Gold (XAUt)? A beginner’s guide to digital gold

Key takeaways

• Each Tether Gold token (XAUt) represents one fine troy ounce of physical gold, stored in Swiss vaults and independently audited.
  
  
• Tether Gold gives you exposure to physical gold without the storage, transport, and access complications that come with owning the metal directly.
  
  
• You do not need to buy a full ounce to get started. XAUt is divisible down to 0.000001 of a troy ounce, so you can invest whatever amount suits you.
  
  
• Tether Gold is now listed on Luno. You can buy, hold, and sell it directly within the app, alongside your other digital assets.
  

Gold has been one of the most trusted stores of value in human history. It has stood the test of time through centuries of economic instability, currency collapses, and financial crises that reshaped the modern world. Now, it is available on Luno in digital form, alongside a range of other listed digital assets.

Tether Gold (XAUt) is a crypto asset that gives you real exposure to physical gold, without the complications that come with owning the precious metal itself. No high storage costs or limited accessibility. Just gold, held safely on the blockchain.

The origins of Tether Gold

Gold has been used as money and a store of value for centuries, long before central banks and stock markets. Gold has since shifted from being used as an everyday currency to functioning as a portfolio anchor, especially during periods of macroeconomic uncertainty. Investors generally use gold as a hedge against this instability. 

Tether Gold was created to bring that same store of value into the digital age. It was launched in 2020 by TG Commodities, a subsidiary of Tether, and was built to make gold accessible, divisible, and transferable. 

What is Tether Gold?

Tether Gold is a cryptocurrency backed physical gold. Each unit (XAUt) represents ownership of one fine troy ounce of physical gold, which is stored in a vault in Switzerland.

The gold in the vault meets the London Bullion Market Association (LBMA) Good Delivery standard, the benchmark for gold quality used by central banks and institutional investors worldwide. It is among the highest standards in the industry.

As of May 2026, Tether Gold is backed by over 22 metric tonnes of physical gold, with a total of  $3.3 billion in circulation. It is the largest tokenised gold asset in the world by market cap.

Why is gold a trusted asset?

Gold has earned its reputation as a trusted store of value over thousands of years, making it one of the most recognised safe-haven assets in global financial markets. Unlike fiat currencies, gold cannot be printed or devalued by central bank policy, giving it an inherent scarcity that investors rely on during periods of economic uncertainty. Historically, when equity markets declined, inflation rose, or geopolitical tensions escalated, gold tended to hold its value, or appreciate, while other assets sold off. This inverse relationship with risk sentiment is why institutional and retail investors alike allocate a portion of their portfolios to gold as a hedge. Its liquidity, universal acceptance across borders, and centuries-long track record make it a foundational component of any diversified investment strategy. 

There are three main reasons investors have historically included gold in their portfolios:

1. It is considered a long-term store of value 

Unlike fiat currencies, which can be devalued through inflation and monetary policy decisions, gold has maintained its purchasing power across generations. People have used it to preserve and pass on wealth for thousands of years.

2. Gold can hedge against inflation 

When the cost of living rises, the gold price has historically risen with it. In an era where central banks have printed money at unprecedented levels, gold’s scarcity makes it a meaningful counterweight to currency devaluation.

3. Gold can be used to diversify a portfolio 

Gold has historically had a low or negative correlation with stocks and other financial instruments. That means when equity markets fall, gold does not necessarily follow. For investors who already hold crypto assets, gold offers an additional layer of balance. 

What are the advantages of XAUt?

• When you buy Tether Gold, you are buying a cryptocurrency that is directly linked to a specific gold bar held in a Swiss vault. Each bar has a unique serial number tied to the tokens it backs, and you can verify your specific allocation at any time through a dedicated lookup tool on Tether’s website. The reserves are independently audited on a regular basis and attestation reports are published.
  
  
• Tether Gold is divisible. XAUt can be bought in increments as small as 0.000001 of a troy ounce. 

Tether Gold vs physical gold bars

	Physical gold	Tether gold
Storage	Stored at home, with a bank or a specialist storage provider.	The physical gold is stored in professional Swiss vaults by TG Commodities. XAUt is held in your Luno wallet or any compatible crypto wallet.
Access and liquidity	Bought and sold through a dealer, bank, or exchange during market hours.	Trades continuously, 24 hours a day, 7 days a week.
Redemption	You already hold the physical metal.	Tokens can be redeemed for physical gold bars delivered to an address in Switzerland, subject to minimum requirements.
Verification	Authenticated through physical testing or a trusted intermediary.	Each bar’s serial number, weight, and purity are published on-chain and verifiable at any time through Tether’s website.

Tether Gold is now listed on Luno

You can now buy, hold, and sell Tether Gold directly on Luno. That means you can access real gold exposure from the same platform you use for your other crypto assets, without opening a separate account or dealing with another provider.

FAQs

1. Can I buy Tether Gold without owning a full ounce? 

Yes. XAUt is divisible down to 0.000001 of a troy ounce, so you do not need to buy a full ounce to get exposure to the gold price.

2. Do I need a separate Luno account to buy Tether Gold? 

No. Tether Gold (XAUt) is listed directly on Luno, so you can buy, hold, and sell it from the same account you use for your other crypto assets. No additional sign-up or separate account needed.

3. Is Tether Gold backed by real gold? 

Yes. Each XAUt token is backed by one troy fine ounce of physical gold held in a Swiss vault. The gold is allocated, meaning specific gold bars are assigned to token holders rather than held in a pooled reserve.

4. Where is the gold that backs Tether Gold stored? 

The physical gold backing XAUt is stored in a Swiss vault. Switzerland was chosen for its strong regulatory framework, political stability, and long-standing reputation as a secure jurisdiction for precious metal storage.

5. How is Tether Gold audited? 

Tether publishes regular attestations confirming the gold reserves backing XAUt. Token holders can also verify which specific gold bars back their tokens using the lookup tool on Tether’s website.

6. What blockchains is Tether Gold available on? 

XAUt is available on Ethereum (as an ERC-20 token) and on the TRON network (as a TRC-20 token). On Luno, you can hold and trade XAUt without needing to manage blockchain networks yourself.

7. Is Tether Gold the same as Tether (USDT)? 

No. While both are issued by Tether, they serve different purposes. USDT is a stablecoin pegged to the US dollar, whereas XAUt tracks the price of gold and will fluctuate with the gold market.

8. What are the risks of holding Tether Gold? 

The main risks include gold price volatility (XAUt rises and falls with the gold market), counterparty risk on Tether as the issuer, and liquidity risk depending on market conditions. XAUt is not a stablecoin and its value is not guaranteed.

9. Are there storage or custody fees for holding XAUt on Luno? 

Luno does not charge custody fees for holding XAUt.

10. Can I use Tether Gold as collateral or send it to an external wallet? 

XAUt can be withdrawn from Luno to an external wallet that supports the token standard.

*Investing in cryptocurrency may result in the loss of capital.This information should not be construed as a solicitation to trade. All opinions, news, research, analysis, prices or other information is provided as general market commentary for information purposes only and is not investment advice or recommendation. Luno always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.