- Ledn will allow clients to use Tether Gold as collateral for loans, expanding beyond its Bitcoin-backed lending model.
- Loans will continue to be issued and repaid in Tether’s USDT and USAt stablecoins without scheduled monthly repayments.
- The move reflects growing adoption of tokenised real-world assets as commodities gain a larger share of the blockchain finance market.
Ledn announced plans to add Tether Gold (CRYPTO:XAUT) as eligible collateral for loans later this year, allowing clients to borrow against tokenised gold holdings without selling the asset.
The expansion extends Ledn’s existing lending model, which has primarily focused on Bitcoin (CRYPTO:BTC) collateral and maintains customer assets on a one-to-one basis without rehypothecation or yield-generating activities.
“Clients will be able to use XAUt as collateral for loans instead of selling their holdings for cash,” said Ledn in its announcement.
Under the programme, loans will be issued and repaid using Tether’s USDT and USAt stablecoins, and borrowers will be able to repay loans at any time without fixed monthly payment schedules.
Ledn said the service will be available across most jurisdictions where it operates, although the new Tether Gold lending product will not initially be offered in Canada or the European Union.
The announcement comes as tokenised commodities gain a larger role within the real-world asset sector, with Token Terminal reporting that tokenised financial assets exceed US$43 billion and commodities account for nearly 17% of the market.
Tether Gold has benefited from strong demand for gold-backed digital assets during recent commodity market gains, while the broader tokenisation market continues to expand beyond cryptocurrencies into traditional asset classes.
At the time of reporting, Bitcoin price was $62,984.90.
