Ledn Accepts Tether Gold (XAUt) as Loan Collateral

Ledn announced Thursday that it will accept Tether Gold (XAUt) as eligible collateral. Customers can use XAUt to borrow in Tether’s USDT or the U.S.-targeted USAt stablecoin without selling their tokenized gold. Loans can be repaid at any time and do not have scheduled monthly payments.

Under Ledn’s lending model, client collateral is held one-to-one and is not rehypothecated, lent out or used to generate yield. Loans are issued and repaid in USDT or USAt. Tether introduced USAt in the United States in January as a stablecoin designed to comply with the GENIUS Act. The product is rolling out across most jurisdictions where Ledn operates but is not available in Canada or the European Union.

Accepting XAUt gives customers a way to access cash without selling gold and triggering a taxable event. Tether Gold’s market capitalization expanded to about $2.89 billion this year as bullion prices rose; gold reached highs above roughly $5,600 per troy ounce before pulling back to about $4,300.

Tokenized commodities have grown in the tokenization market. A recent industry report placed tokenized financial assets above $43 billion, with commodities making up roughly 17% of that total. Tokenized gold differs from commodity derivatives and futures because tokens represent backed ownership of the underlying metal while enabling faster transfers and trading on blockchain networks.

Ledn’s update broadens the digital assets customers can pledge for credit. Ledn stated collateral will remain segregated and not be used for other purposes while loans are outstanding.