Tether Gold XAUt

Intro – What is XAUt?

Tether Gold (XAUt) is a tokenized representation of physical gold issued by Tether, where each XAUt token corresponds to one fine troy ounce of physical gold held in secure vaults in Switzerland. The gold backing XAUt conforms to London Good Delivery standards and is fully allocated, meaning each token is directly linked to specific gold bars.

XAUt combines gold’s role as a timeless store of value with the efficiency and composability of blockchain-based assets. Holders benefit from direct exposure to physical gold while retaining the ability to transfer, custody, and use the asset on-chain without relying on traditional intermediaries. The underlying gold is redeemable for physical delivery (subject to minimum thresholds), reinforcing the asset’s real-world anchoring.

As a non-sovereign, hard monetary asset with deep global liquidity, gold aligns naturally with Frankencoin’s conservative, over-collateralized design. XAUT represents one of the most liquid tokenized gold instruments available today and provides a pragmatic bridge between real-world value storage and decentralized financial infrastructure.

Data about the Token

• Issuer: Tether Gold (TG Commodities Limited)
• Backing: 1 troy ounce of LBMA London Good Delivery gold per XAUT
• Market Capitalization: CHF 1.8Bn
• Average Daily Trading Volume: CHF 210m
• Listings: Bybit, OKX, Bitget, Fluid, Uniswap, Curve
• Launch & Liquidity History: Live since 2020, with consistent demand during multiple market cycles
• Number of Holders: >17,500
• Custody & Audits: Allocated gold stored in Swiss vaults; bar-level information published by Tether

Proposed Parameters

• Collateral: XAUt
• Smart Contract: 0x68749665ff8d2d112fa859aa293f07a622782f38
• Reserve Requirement: 20%
• Risk Rate: 0.5%
• Liquidation Price: ZCHF 2,500
• Minting Limit: ZCHF 5,000,000

Value Proposition

Adding XAUt as collateral introduces a second, highly liquid tokenized gold primitive to the Frankencoin system, further strengthening its positioning as a hard, CHF-denominated currency backed by real-world assets.

Key Benefits

1. Diversification with a Highly Liquid RWA
XAUt provides exposure to one of the most liquid real-world assets globally. Including gold materially diversifies Frankencoin’s collateral base away from purely crypto-native risk.

2. Alignment with a Hard-Currency Philosophy
Gold has served as a monetary anchor for centuries. Using gold-backed collateral reinforces Frankencoin’s ambition to represent a really hard currency: conservative, scarce, and resilient across economic cycles.

3. Complementary Gold Exposure
Adding XAUt alongside other gold-backed tokens avoids single-issuer concentration risk while maintaining exposure to the same underlying asset class.

4. Capital Efficiency for Gold Holders
XAUt holders can unlock Swiss-franc liquidity without selling gold exposure, enabling hedging, spending, or reinvestment while preserving long-term value storage.

5. Institutional and Global Appeal
Gold-backed CHF liquidity is attractive not only to crypto-native users but also to globally distributed, capital-preservation-focused users seeking a stable and politically neutral monetary base.