Question 1

What is XAU₮?

Accepted Answer

Tether Gold (XAU₮) is a gold-backed digital token issued by TG Commodities. Official materials describe it as a token representing rights related to physical gold: holders own gold-related rights recorded in the form of on-chain tokens, rather than shares in the issuing company. This structure combines two layers: physical gold as the backing foundation, and tokens as digital records that can be held and transferred in supported environments. A token balance in a wallet does not mean that the user personally holds gold bars; the allocation and custody of the gold are handled through the system disclosed by the project.

Question 2

What backs XAU₮?

Accepted Answer

XAU₮ is backed by physical gold. The official attestation report states that tokens correspond to undivided interests in specific gold bars; therefore, the token's connection to gold is not simply a gold price written into code, but is based on corresponding gold held within a custody arrangement. An “undivided interest” means that multiple token holders may correspond to different economic portions of the same gold bar, without requiring each wallet to correspond separately to an entire bar. It is not equivalent to directly holding fund shares in a gold ETF, nor is it equivalent to holding equity in the issuer.

Question 3

How is XAU₮ created, and how is it connected to gold custody?

Accepted Answer

The creation of XAU₮ is conditional on the corresponding gold having been received by the custodian. The sequence described in official attestation materials is that corresponding physical gold first enters the custody arrangement, and the corresponding tokens are then created; the creation process therefore links newly issued tokens to newly added gold backing. This rule explains the condition for creation; it does not mean that all users can independently mint tokens in any amount. Buying and selling on a platform or transferring between wallets are different operational and settlement layers from the issuer creating new tokens after gold is placed in custody.

Question 4

What is the smallest unit into which XAU₮ can be divided?

Accepted Answer

Yes. The official website states that XAU₮ is divisible to 0.000001 troy ounce, or one millionth of a troy ounce. Divisibility determines the smallest unit that can be used to represent balances and transfer amounts, allowing gold exposure below one troy ounce to be expressed in token amounts. For example, 0.5 XAU₮ and 0.000001 XAU₮ are gold-related token balances of different sizes; precision does not guarantee that every amount has the same trading availability or cost. Whether a given amount can actually be transferred also depends on whether the wallet, network, and service provider used support the asset and that amount.

Question 5

How can I check the gold allocation corresponding to XAU₮?

Accepted Answer

The official website provides a gold allocation lookup tool. Following the tool's instructions, holders can enter the address holding their tokens to query the gold allocation associated with the XAU₮ held at that address. The lookup connects on-chain holding records with the project's disclosed gold allocation; it does not allow users to choose, withdraw, or move a particular gold bar themselves. Use the official Tether Gold website for the lookup and confirm that the entered address is the wallet that actually holds the token. Balance changes, transfer confirmation status, and the tool's processing method can all affect the result, so the information displayed by the official tool at the time of the lookup should prevail.

Question 6

What is the relationship between XAU₮ and the price of gold?

Accepted Answer

Holding XAU₮ provides exposure related to the price of gold, but the token's market trading price and the spot price of gold are not the same concept. Changes in the gold price alter the value reference of the gold interests it represents, while the execution price of the token on a particular platform is also affected by that platform's trading conditions, order book, and transfer availability. Accordingly, a rise in gold does not automatically guarantee that XAU₮ can be sold at precisely the same proportion at any given time, and vice versa. Understanding price requires considering both gold as the underlying reference and the token's specific trading, custody, and transfer environment.

Question 7

Is XAU₮ a fiat stablecoin?

Accepted Answer

XAU₮ is not a fiat stablecoin designed to target a fixed fiat-currency amount. It is positioned as a gold-backed token, with gold rather than a fixed face value in a particular fiat currency as its value reference; gold prices themselves change with the market. This distinction affects expectations for use: when viewing XAU₮ as gold-related exposure, attention should be paid to gold prices and token trading conditions; when viewing certain fiat stablecoins as currency-denominated instruments, attention should focus mainly on their fiat peg and redemption mechanism. The two should not be regarded as the same product merely because both take the form of tokens.

Question 8

How can XAU₮ be held and transferred?

Accepted Answer

XAU₮ can be held or transferred in wallets and platform environments that support it; this addresses recordkeeping and delivery at the digital-asset layer. Before initiating a transfer, confirm that the network used, recipient address format, and service provider support XAU₮, because sending to an incompatible network or address may prevent the asset from being received as intended. On-chain transfers and physical-gold redemption are two separate paths. The former transfers a token balance from one address to another; the latter involves the issuer's specified eligibility, amount, location, and process, and does not occur automatically merely because an on-chain transfer has been completed.

Question 9

Can XAU₮ be redeemed for physical gold?

Accepted Answer

The official website states that XAU₮ may be redeemed for physical gold under qualifying conditions and notes that delivery takes place in Switzerland. Redeemability means the project provides a possible path from token rights to physical delivery, but it does not mean that every holder, every amount, or every region can settle immediately under the same conditions. Completing physical redemption is generally different from an ordinary on-chain transfer: applicable official conditions must be met, and tokens and delivery must be handled according to the prescribed process. Eligibility, fees, quantity thresholds, timing, and specific delivery requirements directly determine whether it can be completed; read the current official terms before applying.

Question 10

How does XAU₮ differ from a gold ETF or company stock?

Accepted Answer

XAU₮ is not stock in the issuing company and does not represent ownership of the company or a claim to dividends; official materials describe a digital token associated with undivided gold interests in specific gold bars. Compared with a gold ETF, XAU₮ is held and transferred through tokens and their supporting networks, rather than through a traditional fund-share account. All three may expose users to changes in gold-related value, but their rights structures and operating methods differ. The actual product documents should be used to determine whether one holds a gold-backed token, fund shares, or corporate securities; they cannot substitute for one another simply because all are related to gold.

Question 11

What conditions should be especially understood when using XAU₮?

Accepted Answer

When using XAU₮, at minimum consider changes in gold prices, token transfer and custody operations, and physical redemption conditions. Gold price changes affect gold-related exposure; private keys, addresses, network selection, and service-provider support affect whether tokens can be transferred safely and correctly; and whether redemption is feasible also depends on official conditions. These factors are not the same type of risk: gold-price volatility does not disappear because an on-chain transfer is correct, and holding tokens correctly does not automatically satisfy physical-redemption conditions. Before acting, separately confirm token support information, wallet and network compatibility, and applicable legal and product documents.

Question 12

Where can I obtain official information about XAU₮?

Accepted Answer

For XAU₮'s project positioning, gold allocation lookup, divisibility, and redemption information, consult the Tether Gold official website first; for the issuing entity and related information documents, consult TG Commodities' Relevant Information Document; for reserves and creation conditions, consult the official attestation report. Different documents answer different questions, and no single webpage can replace all of them. When verifying assets in a wallet, the token information in official materials should also be compared item by item with the networks and token versions actually supported by the service provider used. This separates the question of “project-level gold backing information” from whether a current wallet or platform can process the asset.

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