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      Tether's Tokenized Gold Sees Significant Growth in DeFi Markets

      Tether's tokenized gold, known as XAUT, has seen a substantial influx into decentralized finance (DeFi) platforms, with approximately $94.6 million now deposited. The majority of these deposits are concentrated on Aave and Uniswap, with Aave capturing 74.2% of the total XAUT DeFi deposits, primarily through its V3 and V4 markets.

      Aave's growth in XAUT deposits has been remarkable, increasing from around $40 million in early June 2026 to approximately $76.7 million by mid-August, marking a growth rate of about 91.7% in just ten weeks. As of early September 2026, total XAUT DeFi deposits across various platforms surpassed $100 million for the first time, indicating a growing trend in utilizing gold as collateral in lending markets.

      On Aave, XAUT operates as an ERC-20 token, allowing users to deposit it and borrow stablecoins while maintaining exposure to gold's price fluctuations. Despite this growth, XAUT's utilization in lending pools remains relatively low, accounting for only about 1.5% of the combined market capitalization of XAUT and PAXG, the two leading tokenized gold products.

      In late September 2026, Tether minted an additional 119,670 XAUT tokens, valued at around $495 million, which is backed by physical gold stored in Swiss vaults. This increase in supply raises questions about whether it reflects new demand or a redeployment of existing holdings. With Aave dominating the market, the future of tokenized gold lending will depend on how much of this new supply enters the lending markets.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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