Tether CEO Paolo Ardoino says XAUT is on track to challenge gold ETFs, while Anchorage Digital now supports the token for eligible institutions. The open question is how readily those routes turn the token into funds at the size and price a holder needs.
Anchorage Digital's support for Tether Gold gives eligible institutional clients routes to sell or borrow against XAUT, as Ardoino promotes the token as a gold-ETF challenger. Like gold-trust shareholders, token holders still depend on counterparties to turn that exposure into funds.
In Tether's November 12 announcement, its CEO said he believes XAUT is on track to become "the first true competitor to the gold ETF market." A day earlier, Anchorage announced custody, principal-desk trading and collateral support for the gold-backed token.
What Anchorage clients can do with XAUT
For eligible clients, desk-sale proceeds come from the trading counterparty. Anchorage also advertises USD or USDT borrowing against bank-custodied XAUT through arrangements with other clients. Borrowing keeps gold exposure but creates debt, and the announcement does not establish bank-funded lending.
Access is institutional, with limited high-net-worth availability. Custodied tokens lack Anchorage guarantees and FDIC or SIPC protection, so custody provides neither an insured gold deposit nor assured liquidity.
Direct issuer access is narrower. Anchorage's notice says US persons cannot purchase or redeem XAUT with TG Commodities. The issuer's terms contain a qualification: US counterparties that are eligible contract participants may be accepted at Tether Gold's sole discretion.
How the ETF comparison looks
Even an eligible, verified issuer customer does not have an unconditional cash buyback. The terms describe whole-bar redemption for delivery in Switzerland, or a customer can request that Tether Gold attempt a sale to a gold dealer or broker.
IAU holders use intermediaries too. IAU shares trade on NYSE Arca through brokerage accounts, so a market buyer supplies the money in an ordinary share sale, while only authorized participants redeem baskets for gold.
The measurable comparison remains uneven. iShares reported 9,023,902 IAU shares traded on November 13 and a 0.01% 30-day median bid/ask spread as of that date. Anchorage's announcement supplies no comparable depth series, quoted spreads or executed lending totals for XAUT.
Ardoino's ETF challenge turns on usable access: a client who qualifies, a counterparty willing to transact and terms that deliver the required funds.
Source: CryptoSlate
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