How does Tether Gold maintain its value, and what underpins XAUT?

[chainsniff]

Each XAUT token represents one troy ounce of physical gold held in secure vaults, primarily in Switzerland. Unlike fiat-backed stablecoins like USDT or USDC, XAUT is directly collateralized with bullion, not paper assets or short-term treasuries. Tether employs HSBC veterans and professional custodians to manage logistics, audits, and custody operations, aiming to ensure reserve integrity and mitigate systemic counterparty risk.

[EmTeam]

Each token is tied directly to allocated physical gold — that’s the backbone. 🪙

[alex10]

Its stability comes from off-chain reserves, not market speculation.