XAUt matters because it merges gold as a store of value with the efficiency of blockchain. In regions where inflation or currency devaluation erodes savings, XAUt provides a hedge against risk. It also offers investors and everyday users a simple way to hold and transfer gold globally, without the logistical barriers of physical storage and transport.

XAUt tokens are issued when investors purchase them through Tether Gold. Each token equals one troy ounce of gold stored in a Swiss vault. Token holders can track their ownership through serial numbers linked to specific gold bars. Unlike traditional gold, XAUt can be transferred instantly across blockchains and used for payments with Oobit.

XAUt carries risks tied to the price of gold, which can fluctuate. It also depends on Tether’s custody and vault management, meaning trust in the issuer is critical. Liquidity is lower compared to USDT or USDC, making it less practical for trading, though it excels as a long-term hedge and diversification asset.