Ledn, the popular bitcoin-backed lending platform, has added support for Tether’s XAUT gold token, the company said Thursday.
“When XAUT-backed loans go live, you will be able to borrow against your gold the way you already borrow against Bitcoin,” Ledn said. Tether and Ledn have an existing relationship, with the stablecoin issuer making a strategic investment in the lending platform in November 2025.
Tether’s USDT token is the world’s largest stablecoin. The company holds roughly $23 billion worth of gold bullion, according to Ledn’s statement. Each XAUT token represents one fine Troy ounce of physical gold held in Swiss vaults.
“As digital assets become an increasingly important part of the global economy, demand is growing for solutions that combine long-term ownership with financial flexibility. The addition of XAUT, USDT, and USAT expands those opportunities and reflects the growing role of digital assets in modern financial markets,” Tether CEO Paolo Ardoino said.
Ledn operates a custody, risk management, and liquidation system designed to keep client assets secure throughout the life of each loan. The company said it has originated over $10 billion worth of loans since 2018.
“This is not a move away from Bitcoin,” Ledn co-founder Adam Reeds said. “Bitcoin stays at the center of how our clients build wealth. Gold sits beside it, the same hard-asset thinking applied to the oldest store of value there is.”
The crypto lending niche suffered significant setbacks in 2022, a year that saw the bankruptcy of centralized credit firms like BlockFi, Celsius, Genesis, and Voyager Digital.
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Executive Summary
TL;DR: Tether’s XAUT gold token has been added to Ledn’s lending platform, enabling users to borrow against their physical gold holdings, as the crypto lending niche continues to recover from significant setbacks in 2022. This move signifies a strategic expansion of opportunities in modern finance, where digital assets are increasingly integrated.
The Core Friction
The Core Friction
Tether’s XAUT addition marks a significant expansion of opportunities in modern finance, where digital assets are increasingly integrated. The move taps into the growing demand for solutions that combine long-term ownership with financial flexibility. This friction is driven by the convergence of traditional and digital asset markets, with the adoption of XAUT representing a strategic move by Ledn to address this demand.
Market Impact & Chain Reaction
Short-term
The addition of XAUT could potentially create new opportunities for borrowers and lenders, but it also raises questions about the risks associated with lending against physical assets. In the short term, the impact will be felt by borrowers, who will now have access to gold-backed loans, and lenders, who will have a new asset to diversify their portfolios.
Mid-term
In the mid-term, the impact will be felt by the broader crypto market, as the integration of XAUT reflects the growing importance of digital assets in modern finance. This could lead to increased adoption of stablecoins and other digital assets, as well as a greater emphasis on financial flexibility and long-term ownership.
RichSilo Verdict
Smart money should watch the XAUT integration, as it reflects a strategic shift in the crypto lending market, driven by the convergence of traditional and digital asset markets. The implications will be felt across the market, as the integration of XAUT signals a growing demand for solutions that combine long-term ownership with financial flexibility.
