One of the largest crypto companies, Tether is best known for its stablecoins, USDT and XAUT.

While USDT is pegged 1:1 to the U.S. dollar, XAUT is pegged to an ounce of gold.

XAUT is a digital asset available as an ERC-20 token on the Ethereum blockchain and as a TRC20 token on the TRON blockchain.

One XAUT is backed by one fine troy ounce of physical gold. It meets the Good Delivery standard of the London Bullion Market Association (LBMA).

The allocated gold is identifiable with a unique serial number, purity, and weight and is redeemable in the form of physical gold.

As reported earlier, Tether published its attestation for the second quarter of the year on July 31, in which it boasted of expanding its gold holdings to more than 146 tons.

Tether quietly lends $1.5 billion to Gold.com

Bloomberg reported on Sep. 17 that Tether has turned out to be a major gold lender, providing approximately $1.5 billion in financing to the popular U.S. dealer, Gold.com.

Citing Gold.com’s annual report, the report mentions that Tether’s $1.5 billion loan accounted for the majority of precious-metal-based leases outstanding at the bullion dealer by the end of June.

The financing lets Gold.com access the bullion and other precious metals without an immediate payment. The dealer can engage in trading and other operations before paying off the loan.

One of the world’s largest private gold holders, Tether had earlier invested $150 million in Gold.com in February, acquiring a 12% stake in the dealer.

The latest revelation indicates the crypto company is further expanding into the gold market while its USDT stablecoin dominates the segment with a 60% market share.

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Tether quietly lends $1.5 billion to Gold.com

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