Tether Gold

The Financial Conduct Authority is weighing whether to lift tokenized gold out of the UK's fund rulebook entirely, a move that could change how London's bullion vaults are used. The regulator will set out the idea on Monday, the Financial Times reported, saying it could work with the Treasury on a targeted exemption from the collective investment scheme and alternative investment fund perimeter, covering certain gold tokens or gold market infrastructure. Industry participants had told the FCA that uncertainty over whether tokenized gold falls within those regimes, both of which restrict who can buy them, could hinder its development. The stakes are national: the World Gold Council puts London's share of global gold trading volumes near 70%, while China is building a rival bullion hub and chasing the same flows. Both leading gold tokens are issued outside the UK perimeter, with Tether Gold backing $2.63 billion in distributed asset value and Pax Gold backing $1.87 billion, according to RWA.xyz, while monthly transfer volume reached $3.70 billion for XAUT and $1.61 billion for PAXG, up 10.91% and 14.10% over 30 days. The FCA believes the move could unlock more of London's bullion reserves for use as collateral, and the Bank of England will consult later this year on whether to allow clearing houses to accept tokenized collateral, while also considering adding tokenised assets, including stablecoins, to its Sterling Monetary Framework. FCA officials say no decisions have been made, and whether an exemption reaches retail buyers or stops at the wholesale desks that pledge collateral remains to be seen.

Equiniti and Bullish have completed a dividend distribution for Elemental Royalty Corp. that offered eligible shareholders the option to receive payments in Tether Gold alongside traditional methods. Equiniti facilitated the digital asset component of the distribution, while Bullish provided digital asset distribution support for shareholders who elected to receive payment in Tether Gold. The initiative expanded shareholder choice while maintaining established distribution processes, demonstrating how issuer services and digital asset infrastructure can work together to support evolving needs.

Binaxity Ltd has launched a Gold Investment Line of Credit that lets users build gold exposure with double their buying power. Users contribute as little as $10 in USDT or USDC, Binaxity matches it 1:1 as an interest-only loan, and the combined funds buy Tether Gold (XAUt). Borrowers pay monthly interest starting at 6.5%, with no margin calls and the ability to redeem anytime. The interest rate is variable, rising only if the XAUt price drops, and can reach a maximum of 15.5% if the decline exceeds 80%.

Tether Gold recorded $17.4 million in net exchange outflows over the past 24 hours, around 16 times its average daily level, as crypto whales accumulated the tokenized gold asset. Investment firm Abraxas Capital withdrew approximately 3,931 XAUT worth around $15.96 million from Bitfinex, OKX, Bybit, and Binance, while a whale wallet resumed accumulating after a three-year hiatus, pulling 953 XAUT valued at roughly $3.93 million from Binance over three days. Over the past seven days, XAUT registered net outflows of $34.1 million, more than four times its typical weekly pace. The trend extends to other tokenized gold assets, with Paxos Gold also posting notable net exchange outflows. However, some large holders have been selling, with two of the largest tracked wallets each shedding more than 5,000 XAUT over 30 days, tempering the bullish signal.

Tether's gold reserves have climbed to approximately 148 tonnes, worth roughly $23 billion as of January 31, according to Jefferies analysts. The holdings back both the USDT stablecoin and the XAUT token, placing Tether among the world's top 30 gold holders. Crypto lender Ledn has added support for XAUT and USDT, allowing users to hold Bitcoin and XAUT in transaction accounts and receive or repay loans in USDT or USAT. Later this year, users will be able to borrow against XAUT, with Tether stating that loan collateral will never be lent out for interest or used to fund the business.