CryptoSlate
Anchorage Digital now lets eligible institutional clients custody and trade Tether Gold's XAUT, use it as collateral with other bank clients, and seek USD or USDT borrowing against bank-custodied tokens. Tether CEO Paolo Ardoino has said XAUT is on track to become "the first true competitor to the gold ETF market." The comparison remains unfinished: Anchorage disclosed no XAUT depth series, quoted spreads or executed lending totals, while iShares reported 9,023,902 IAU shares traded on November 13 and a 0.01% 30-day median bid/ask spread.
Why it matters
Anchorage's offering broadens XAUT beyond passive custody by adding a principal trading desk and collateral utility for eligible clients. Borrowing can preserve exposure to tokenized gold while providing liquidity, although it creates debt and does not establish bank-funded lending.
The structure still differs materially from a retail gold ETF. US persons generally cannot purchase or redeem XAUT directly with TG Commodities, although eligible contract participants may be accepted at Tether Gold's discretion. Verified issuer customers do not receive an unconditional cash buyback. The stated route involves whole-bar redemption for delivery in Switzerland or a requested sale to a dealer or broker, which requires a buyer and leaves Tether Gold without an obligation to repurchase the tokens or bullion.
Market impact
The main investment test is whether these routes deliver funds at the size and price clients need. Anchorage offers institutional access, but platform eligibility, issuer eligibility and issuer acceptance remain separate gates. Its services also span several legal entities and do not establish one universal trade-contract structure.
Custody adds operational access rather than insured gold ownership. Custodied XAUT does not carry Anchorage guarantees, FDIC insurance or SIPC protection. Liquidity can also remain constrained because trading proceeds come from counterparties, borrowing terms depend on arrangements with other clients, and no universal sale settlement currency or fiat-withdrawal timetable was specified.
Tether said KPMG U.S. audited TG Commodities S.A.
Frequently asked questions
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How can institutional clients use XAUT through Anchorage?
Eligible clients can custody and trade XAUT, use it as collateral with other bank clients and seek USD or USDT borrowing against bank-custodied tokens.
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Can US investors directly buy or redeem XAUT?
US persons generally cannot directly purchase or redeem XAUT with TG Commodities. Eligible contract participants may still be accepted at Tether Gold's sole discretion.
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How does XAUT differ from an iShares gold ETF share?
Both routes depend on counterparties. IAU creation and redemption are reserved for authorized participants, while XAUT redemptions require verified issuer status and discretionary issuer acceptance.
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Does Anchorage custody protect XAUT holders?
No. Custodied XAUT does not carry an Anchorage guarantee, FDIC insurance or SIPC protection, so custody should not be treated as an insured gold deposit.
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What determines whether XAUT can rival gold ETFs?
The decisive factors are institutional access, available counterparties, trading depth, borrowing terms and the speed and cost of converting XAUT into cash.
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