Gold is approaching a historic milestone. After reaching a record high of $4,378 per ounce, prices have remained high, reaching $4,225 per ounce on 20 October. This brings the total value of above-ground gold close to $30 trillion, according to The Economic Times.
Tether Gold Price Chart | Source: BingX
The rally is also lifting the value of crypto tokens backed by gold. According to CoinGecko, the category surpassed $3.9 billion in market cap as of 20 October, with 24-hour trading volumes recently reaching between $800 million and $1 billion. Investors are seeking the stability of gold alongside 24/7 on-chain liquidity. Within this sector, Tether Gold (XAUt) is in the lead with a market cap of around $2.2 billion.
In this guide, we explain how XAUt works, why interest is growing, and the real differences between XAUt and physical bullion. We cover fees, storage, redemption, liquidity and risk so you can choose the option that best fits your strategy.
What Is Tether Gold (XAUt) the Tokenized Gold Token?
Tether Gold (XAUt) is a digital token that represents ownership of physical gold. Each XAUt corresponds to one fine troy ounce on a London Bullion Market Association (LBMA) Good Delivery bar held in Swiss vaults. The token is issued by TG Commodities, S.A. de C.V. and launched in 2020 to combine the familiarity of gold with the utility of blockchain.
Unlike a typical “gold price tracker,” XAUt confers undivided ownership rights to specific bars. Holders can look up the serial number, weight and purity linked to their on-chain address. Because it is a token on public networks, you can trade and transfer exposure to gold 24/7, even when traditional bullion venues are closed. XAUt can be split into very small fractions, down to 0.000001 troy ounce, which makes gold accessible in sizes that are impractical with bars and coins.
There are two ways to acquire it. You can buy a minimum of 50 XAUt directly from the Tether Gold platform after identity verification, or you can purchase smaller amounts on exchanges that list XAUt trading pairs. There are no custody fees charged by the issuer; purchases and redemptions incur a one-time 25 basis point fee, and normal network gas fees apply for on-chain transfers. U.S. persons are not permitted to purchase or redeem XAUt via the issuer and should review the terms carefully.
How Does Tether Gold Work? Digitization & Transferability
Digitization
TG Commodities backs the token supply with LBMA Good Delivery bars. Each XAUt equals one fine troy ounce on an allocated bar. Ownership sits on-chain and is mirrored in vault records. You can verify your bar’s serial number, weight and purity via Tether Gold’s lookup tools.
Transferability
XAUt is an ERC-20 token on Ethereum. Hold it in a compatible wallet and move it like any other crypto, in whole tokens or fractions. Exchanges that list XAUt trade around the clock, so you can adjust exposure anytime, anywhere.
Redemption
To take delivery, you need enough XAUt for a full bar. LBMA bars can be up to about 430 fine troy ounces, so holders aiming to redeem typically deposit at least 430 XAUt. Delivery is available to Swiss addresses for a fee. Alternatively, TG Commodities can try to sell your bar in the Swiss market and wire USD proceeds, minus fees.
On-ramp and verification
Buying direct from the issuer: quick KYC checklist:
• Individuals: two government photo IDs, proof of address dated within 90 days, a selfie holding your ID with the date, and a recent bank statement.
• Corporates: incorporation documents, lists of officers and shareholders, proof of address, recent bank statements, and the ownership structure.
There is a non-refundable 150 USDT verification deposit. After payment clears, purchases usually take a few business days to process.
Or just buy on BingX with faster KYC and 24/7 trading to get XAUt in minutes.
Key Differences Between XAUt and Physical Gold
Both give you exposure to gold. The way you hold and use that exposure is very different.
• Ownership structure: With XAUt you hold a digital claim on allocated bars, visible on-chain and verifiable by serial number. With coins and bars in your possession, you control the metal directly without reliance on an issuer, but you must arrange storage, insurance and transport.
• Access and trading hours: XAUt trades on platforms that run 24/7. Physical gold liquidity depends on dealers, vault opening hours, and settlement arrangements.
• Divisibility: XAUt can be sliced to six decimal places. Splitting a physical bar is impractical and costly.
• Storage and fees: XAUt has no recurring custodian fee from the issuer, though on-chain gas fees apply, and purchases or redemptions via the issuer carry a one-time 25 bps fee. Physical gold typically involves premiums on purchase, plus ongoing storage and insurance if vaulted.
• Redemption logistics: XAUt redemption requires whole-bar quantities with delivery in Switzerland or a sell-for-cash option. Physical gold in hand is already “redeemed,” though selling back to dealers may involve spreads and settlement time.
Comparison Table
| Feature | Tether Gold (XAUt) | Physical Gold |
| Backing | 1:1 claim on LBMA Good Delivery bars allocated to your address | Direct possession of bars or coins |
| Network/Format | ERC-20 token on Ethereum | Tangible metal |
| Minimums | No minimum on exchanges; 50 XAUt if buying from issuer | Varies by dealer and product size |
| Trading Hours | 24/7 on crypto platforms | Dealer and market hours |
| Divisibility | Down to 0.000001 oz | Limited to minted/bar sizes |
| Ongoing Costs | No issuer custody fee; network gas; trading fees | Storage, insurance, potential audits |
| Issuer Fees | 25 bps on purchase/redemption via issuer | Bid-ask spreads and possible assay fees when selling |
| Redemption | Whole-bar redemption in Switzerland or sell for USD | Immediate physical control; resale via dealers |
| Verification | On-chain balance, bar serial lookup | Hallmarks, assays, dealer documentation |
| KYC | Required for issuer purchase/redemption | Dealer requirements vary by jurisdiction |
Should You Choose Physical Gold or Tether Gold?
Choose XAUt if you value convenience and speed. It fits naturally into a crypto trading stack. You can size positions precisely, move them between wallets, or post them on venues that support XAUt trading pairs. If you are building a diversified digital asset portfolio and want a 24/7 “safe-haven” sleeve without arranging vaulting, XAUt is designed for that.
Choose physical gold if direct, tangible control matters most to you. For long-term holders who want outside-the-system metal in a safe or segregated vault, coins and bars still set the standard. Physical owners accept the logistics of storage and resale in exchange for eliminating issuer and smart-contract exposure.
There is also a blended path. Some investors keep a core stack of physical bars for deep security and hold a flexible XAUt balance for trading, rebalancing, and cross-platform mobility.
How to Trade Tether Gold (XAUT) on BingX
Whether you are building a long-term XAUT position, trading short-term volatility, or reacting to major news events, BingX provides flexible ways to trade the token. With BingX AI integrated directly into the trading interface, you can access real-time insights to support smarter trading decisions across both spot and futures markets.
XAUT/USDT trading pair on the spot market powered by Bingx AI
2. Plan the trade: On the chart, click the AI icon to view support and resistance, breakout zones, and suggested entry areas. Decide your entry, stop loss, and take profit.
3. Place and manage the order: Choose Limit or Market, set size, and confirm. Add your stop loss and take profit immediately. If needed, deposit XAUT or USDT and verify the correct network before trading.
Always conduct your own research (DYOR). Diversify your portfolio and never invest more than you can afford to lose.
How to Trade XAUT Perpetual Futures
XAUTUSDT perpetual contract on BingX futures powered by AI Bingo
Futures, especially perpetual futures, let you trade XAUT price movements with leverage; you don’t necessarily need to hold the underlying XAUT. You can go long (betting price will rise) or short (betting price will fall). BingX offers a XAUT-USDT perpetual contract.
1. Switch to the futures/perpetual trading section in BingX: Navigate to Futures and locate XAUT-USDT perpetual contract.
2. Review contract specifications: Things to check include:
• Leverage limits, e.g. 5×, 10×, etc.
• Maintenance margin and initial margin rates
• Funding rate (periodic payments between longs and shorts)
• Mark price, index price, and settlement rules
3. Choose direction (Long or Short) and leverage: Based on your market view, open a long or short position. Leverage amplifies both gains and losses, so use with caution.
4. Set entry, exit & risk controls
• Use stop-loss orders
• Use take-profit orders
• Monitor your margin level
• Be mindful of liquidation risk (if losses push margin below maintenance).
5. Monitor funding and rollovers: As a perpetual contract, there will be a funding rate mechanism (to keep contract price close to the spot). Depending on whether you're long or short, you may either pay or receive funding periodically.
6. Close the position: When your target is hit (or your stop), close the position, and your P&L (profit/loss) will be settled in USDT.
Risk and Considerations
XAUt is issued by TG Commodities, so redemption and access depend on the issuer and its terms, including geo restrictions. As an ERC-20 token it carries typical crypto risks; bad approvals, phishing, or lost keys can mean loss, so use strong wallet security.
Physical delivery requires a full bar, often around 430 fine troy ounces, so many treat XAUt as digital exposure unless they plan for that size. Issuer buys and redemptions cost 25 bps, on-chain transfers incur gas, and exchange trades add maker and taker fees, while physical gold adds premiums, storage, and insurance.
Issuer processing takes several business days after KYC and payment, whereas exchanges that list XAUt can provide faster secondary access. U.S. persons cannot purchase or redeem through the issuer, and liquidity ultimately depends on the venue and pair depth.
Conclusion
Gold has earned its place as a portfolio anchor across generations. Tether Gold (XAUt) takes that anchor and makes it easier to hold and move in a digital environment. You get 24/7 access, precise sizing and on-chain transparency tied to real, allocated bars. If you want direct, tangible control and are comfortable with vaulting logistics, physical bars and coins remain the classic route.
For many, the practical answer is not either-or. Keep a physical core for long-term wealth preservation and add an XAUt layer for flexibility, instant transfers and round-the-clock trading. Whatever mix you choose, align it with your goals, your tolerance for operational complexity, and how you prefer to manage custody.