Tether CEO Confirms XAUT-Backed Crypto Loans Launching Through Ledn Partnership

Tether CEO Paolo Ardoino publicly confirmed on June 29, 2026, that the company is partnering with crypto lending platform Ledn to launch loans backed by its tokenized gold asset, XAUT. The service, expected to roll out later this year, will allow eligible XAUT holders to use their gold-backed tokens as collateral for loans denominated in USDT or USAT, providing liquidity without requiring them to sell their holdings.

How the XAUT Lending Product Works

Under the agreement, Ledn will custody customer XAUT collateral separately from company assets and will not rehypothecate it to generate additional returns. Borrowers will retain exposure to gold price movements while accessing capital. However, declining gold prices could trigger liquidation if collateral falls below required thresholds. Specific loan-to-value ratios, interest rates, and liquidation levels have not been disclosed ahead of the product’s launch.

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The lending model mirrors Ledn’s existing Bitcoin-backed loan structure rather than using decentralized finance protocols. This approach keeps the process under a centralized custodian, which may appeal to institutional investors seeking regulatory clarity. Residents of Canada and the European Union are excluded from the service, with both companies citing evolving regulatory requirements as the reason.

Tether’s Broader Strategy for Tokenized Gold

The partnership builds on Tether’s strategic investment in Ledn announced in late 2025. Ardoino has emphasized growing demand for digital assets that combine long-term ownership with financial flexibility. Tether has been focusing resources on XAUT, including discontinuing some other products to concentrate on gold-backed digital assets.

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The move aligns with rising institutional interest in tokenized real-world assets. If adoption expands, XAUT-backed lending could serve as a bridge between traditional commodity finance and blockchain-based infrastructure, though the service’s success will depend on market conditions and regulatory developments in key jurisdictions.

Written by

Moris Nakamura

Moris Nakamura is the editor-in-chief at CryptoNewsInsights, leading editorial strategy and contributing in-depth analysis on Bitcoin markets, macroeconomic trends affecting digital assets, and institutional cryptocurrency adoption. With over ten years of experience spanning financial journalism and blockchain technology research, Moris has established himself as a trusted voice in cryptocurrency media. He began his career as a financial markets reporter in Tokyo, covering foreign exchange and commodity markets before pivoting to full-time cryptocurrency journalism during the 2017 market cycle.