Tether is positioning its gold-backed token XAUT as a rival to gold ETFs, but new services from Anchorage Digital do not guarantee that holders can raise cash on the scale or schedule they need. Eligible institutional clients can now access custody, trading and collateralized borrowing, with actual outcomes dependent on counterparties, loan terms and platform eligibility.
Ardoino casts XAUT as an ETF challenger
Tether CEO Paolo Ardoino said in a November 12 announcement that he sees XAUT as a potential “first real competitor to the gold ETF market.” A day earlier, Anchorage announced custody, principal trading desk access and collateral-backed borrowing for the gold-backed token.
Tether said KPMG US audited the financial statements of issuer TG Commodities S.A. de C.V. for the year ended December 31, 2025, and issued an unqualified opinion. The audit covered that entity and that financial year; it does not constitute an audit opinion on all of Tether’s current reserves, present-day trading conditions or financing terms.
Anchorage adds trading and borrowing options
For eligible clients, proceeds from XAUT sales come from counterparties. Anchorage also says clients can pledge XAUT held in bank custody to borrow dollars or USDT under arrangements with other clients. Borrowing can preserve exposure to gold, but it also creates a debt obligation. The announcement does not say that the bank supplies the loan funds, and it provides no standard loan terms, settlement currency for sales or timetable for fiat withdrawals.
Anchorage says XAUT can be held in custody by Anchorage Digital Bank in the United States or Anchorage Digital Singapore. The entities listed in the company’s website footer include digital-asset trading provider Anchorage Hold LLC, Anchorage Digital NY LLC, which handles agency trading in New York, and A1 Ltd., which conducts principal trading. The announcement does not specify that every trade is contracted through the same entity.
The services are aimed mainly at institutional clients, though some high-net-worth individuals may qualify. Certain transactions are subject to additional requirements. Custodied tokens are not guaranteed by Anchorage and are not covered by FDIC or SIPC protection. Custody therefore is neither an insured gold deposit nor a guarantee that holders can sell at any time.
US clients face restrictions on direct issuer transactions
Anchorage’s announcement says US persons cannot buy XAUT from or redeem it with TG Commodities. Tether Gold’s terms, however, retain an exception for US counterparties: those meeting the regulatory definition of an eligible contract participant may be permitted to trade at Tether Gold’s discretion. Direct purchases from or redemptions with the issuer also require verification and approval as an issuer client.
Platform access, issuer eligibility and the issuer’s final acceptance are separate steps. Access to Anchorage’s institutional services, or eligible-contract-participant status, does not ensure that the issuer will accept a transaction. Anchorage’s restriction applies to direct transactions with the issuer; it is not a blanket ban on all permitted secondary-market trading or token custody.
Even verified, eligible clients do not have an unconditional right to receive cash in exchange for XAUT. The terms allow clients to request redemption for a full gold bar, delivered in Switzerland. Those who do not want physical delivery can ask Tether Gold to try to sell the gold to a dealer or broker. Fiat proceeds, less fees, are available only if that sale succeeds. Tether Gold is not required to buy back either the tokens or the gold, so this route still depends on finding a buyer.
IAU retail trading differs from redemption rights
iShares Gold Trust product materials say IAU shares trade on NYSE Arca through brokerage accounts. When ordinary holders sell, payment comes from market buyers; the brokerage provides access to trading, while the trust does not pay cash directly because a retail investor has sold shares.
The prospectus currently linked for IAU is dated December 22, 2022. It says only authorized participants can create or redeem baskets of shares in exchange for gold. A retail investor’s ability to sell shares on the market does not give them the same right to redeem gold directly from the trust.
Traditional brokerage accounts may also let clients borrow without selling assets, subject to approval. Fidelity’s margin FAQ says ETFs held for at least 30 days may be eligible collateral, subject to security- and account-specific requirements. Using checks, a debit card or bill payment may also create or increase margin debt. This general policy does not establish that IAU will be approved as collateral for a particular client or determine a specific borrowing limit.
Trading depth and financing terms remain key comparisons
Whether the asset is a token or an ETF, a sale requires a buyer with funds, while borrowing requires a lender. Custody providers can offer trading or financing access, but custody alone guarantees neither liquidity nor loan approval.
iShares reported that IAU traded 9,023,902 shares on November 13, with a 30-day median bid-ask spread of 0.01% as of that date. Anchorage described XAUT as its most actively traded tokenized gold product, but its announcement did not provide comparable market-depth data, quoted spreads or total lending volumes.
The comparison between XAUT and gold ETFs therefore depends on more than custody and collateral support. Clients must qualify, find willing counterparties and obtain terms that meet their funding needs and timing. Sale currencies, fiat withdrawal timelines and borrowing terms still need to be confirmed on a client-by-client basis.