Tether has launched its gold-backed token XAU₮ on the BNB Chain, expanding the tokenized gold market and intensifying competition in the DeFi ecosystem’s real-world asset (RWA) space. XAU₮ is issued against one Troy ounce of gold stored in a Swiss vault and issued under El Salvador’s digital asset framework by TG Commodities. The move is expected to strengthen BNB Chain’s footprint in real-asset-backed DeFi, potentially reinforcing its position as the third-largest DeFi network by TVL. Tether also integrated XAU₮ through the cross-chain USDT0 Network, linking liquidity across multiple blockchains and improving cross-chain asset transfers.
Gold prices hovered around $4,400 per ounce, down from January’s all-time high of $5,589, though they remained elevated. Gold rose 64% in 2025, marking the largest annual gain in four decades as geopolitical tensions and trade uncertainties boosted safe-haven demand.
The tokenized-gold market remains oligopolistic, with the World Gold Council citing high barriers in custody, regulatory compliance, auditing and settlement that limit competition. The DeFi protocol Teo launched thGOLD in January to monetize gold holdings, and existing XAU₮ and PAXG are primarily price-tracking. Tether CEO Paolo Ardoino said XAU₮ does not change gold’s essence but makes it usable within the modern financial system. The pairing of tokenized gold with the BNB Chain is seen as widening the intersection of safe assets and DeFi, though structural and regulatory hurdles remain.
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