- Ledn has expanded its lending platform to allow Tether Gold (XAUt) to be used as loan collateral.
- Loans against tokenized gold provide investors liquidity without triggering a taxable sale, similar to Bitcoin-backed loans.
- The move reflects a growing trend in tokenizing real-world assets, with commodities making up nearly 17% of this $43+ billion market.
- The service is not available in Canada or the European Union, despite its launch across most other operational jurisdictions.
Ledn announced on Thursday that its Bitcoin lending platform now accepts Tether Gold (XAUt) as collateral, enabling investors to borrow against the tokenized asset. This expansion offers a path to liquidity without forcing a sale, as clients can secure loans using their XAUt holdings one-to-one.
Consequently, loans are issued and repaid in Tether’s USDT or USAt stablecoins, which can be repaid at any time without monthly payments. The launch follows Tether’s introduction of the USAt stablecoin in the United States in January, designed for compliance with the GENIUS Act.
Meanwhile, this product broadens the range of digital assets usable for loans during a period of high gold prices. While Bitcoin-backed lending is common, adding tokenized gold represents a push to integrate more real-world assets into crypto financial services.
The market capitalization for Tether Gold peaked near $2.89 billion, data shows, benefiting from bullion’s rally to record highs above $5,600 per troy ounce. However, the precious metal has since pulled back to around $4,300 an ounce but remains up for the year.
Tokenized commodities are gaining significant traction, accounting for nearly 17% of the total tokenized financial assets market according to recent reports. Unlike derivatives, these tokenized assets are backed by the physical commodity, granting direct ownership and enabling faster blockchain transfers.
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