Tether Gold Token XAUT Configuration Guide: Why Choose This Gold Fund Alternative

Facing the depreciation of the US dollar and inflationary pressures, traditional gold funds are no longer the only option. The gold token XAUT issued by Tether is becoming an innovative approach for crypto asset holders to allocate gold assets. Coupled with the recent launch of Tether’s new valuation unit Scudo, this digital alternative to gold funds has lowered the investment threshold to just a few dollars. This article will analyze why XAUT is worth including in the 2026 asset allocation strategy.

Clear prospects for the gold market, three main drivers behind the rally

Last September, spot gold prices hovered around $3,400-$3,500 per ounce. Just three months later, gold prices surged to $4,550 per ounce. This rally is not a flash in the pan; despite recent phase-wise corrections, the upward momentum of gold remains intact.

According to the World Gold Council, the annual gold price increase in 2025 is approximately 65%, with over 50 new all-time highs during the period. As of December 31, the closing price was $4,318.65 per ounce. The main factors supporting this trend include three aspects:

First, the upcoming Supreme Court decision on tariff policies, geopolitical conflicts (such as US actions in Venezuela), and the global “de-dollarization” trend all provide sustained safe-haven demand for gold. Second, the Federal Reserve has restarted its rate-cut cycle, increasing gold’s appeal as a non-yielding asset. Third, central banks worldwide continue to increase gold purchases, with global investors pouring in unprecedented capital, especially North American funds contributing the majority of global capital inflows.

Looking ahead, UBS has raised its gold target prices for March, June, and September 2026 to $5,000 per ounce (an increase of $500 from previous targets), expecting year-end prices to reach $4,800 per ounce. Based on these factors, gold will remain a noteworthy asset class for allocation in 2026.

Four key advantages of XAUT compared to traditional gold funds

Compared to traditional gold funds, XAUT as a new type of gold asset token offers differentiated advantages:

First advantage: Market capitalization and reserve transparency

Tether purchased 26 tons of gold in Q3 2025, bringing its total gold holdings to 116 tons, ranking among the top 30 global gold holders. The $2.3 billion market cap of XAUT demonstrates sufficient liquidity. More importantly, each XAUT is fully backed by physical gold stored in secure vaults, with reserve transparency far exceeding that of traditional gold funds.

Second advantage: Scudo significantly lowers the investment threshold

Tether’s newly launched valuation unit Scudo solves the fractional digit issue present in traditional gold tokens. One Scudo equals one-thousandth of an ounce of gold or one-thousandth of an XAUT token, with a price of about $4.4. This means investors do not need to invest hundreds of dollars to buy a whole XAUT; they can start allocating to gold assets with just a few dollars. This greatly enhances gold’s practicality in daily economic activities and breaks the purchase barriers of traditional gold funds.

Third advantage: Trading flexibility and leverage options

XAUT is listed on mainstream CEX platforms such as Bybit, OKX, Bitget, and well-known DEXs like Uniswap and Curve. Investors can not only buy spot tokens but also support leveraged contract trading, providing options for investors with different risk preferences. In contrast, traditional gold funds usually only support spot trading.

Fourth advantage: Tether’s industry dominance and stablecoin ecosystem

According to Bloomberg citing Artemis Analytics data, global stablecoin trading volume surged 72% in 2025, reaching $33 trillion. Among them, Tether’s USDT trading volume was $13.3 trillion, ranking alongside Circle’s USDC ($18.3 trillion) at the industry forefront. Tether’s dominant position in the stablecoin sector ensures broad application of the XAUT ecosystem, and its high-profit margins support the long-term development of gold tokens.

From 8,888 Bitcoins to 116 tons of gold, Tether’s strength is proven

Tether’s emphasis on gold assets is noteworthy. CEO Paolo Ardoino once stated that Tether purchased 8,888 Bitcoins on New Year’s Eve 2025, worth about $780 million, bringing its publicly disclosed Bitcoin holdings to over 96,000 BTC. Meanwhile, Tether regularly allocates 15% of quarterly profits to increase Bitcoin holdings.

This capital allocation strategy indicates that Tether is not merely a stablecoin issuer but is strategically deploying digital assets across the board. Its focus on gold is also reflected in actual actions—holding 116 tons of gold demonstrates the credibility of this commitment.

Allocation directions and risk warnings

For ordinary investors with limited liquidity and lower risk appetite, converting part of fiat currency into gold assets is a prudent strategy for preservation and appreciation. Compared to traditional gold funds, XAUT and its Scudo units offer lower entry barriers, higher trading flexibility, and better market liquidity.

However, it is important to note that: first, gold tokens are inherently crypto assets and carry systemic risks associated with the crypto market. Second, leveraged trading amplifies potential gains but also increases the risk of losses. Third, policy changes (especially regulatory attitudes toward stablecoins) may impact the development of the XAUT ecosystem.

Against the backdrop of the continuous decline of the USD/CNY exchange rate and active global central bank gold purchases, the value of gold fund allocations is reaffirmed. As a representative of this asset class within the crypto ecosystem, XAUT is indeed worth considering for inclusion in the 2026 asset allocation. Investors should determine the proportion of gold assets (whether traditional gold funds or tokens) in their overall portfolio based on their risk tolerance.