Aurise Foundation, a nonprofit developing tokenized asset infrastructure, announced the launch of XAUE, a yield-bearing gold token linked to Tether Gold (XAU₮). The product is designed for institutional participants and introduces yield generation to tokenized gold, which is traditionally not a source of income.
At launch, Aurelion, a digital asset investment firm, and Antalpha, a crypto financial services provider, committed 16,052 XAU₮ to the system, valued at about $76 million as of April 22. The foundation said XAUE could later integrate with decentralized finance protocols and be used as collateral in on-chain markets.
XAUE aims to change this model. The token keeps exposure to gold while adding a yield mechanism measured in gold units. The system employs a model in which the exchange rate increases over time as yield accumulates.
For example, a deposit of 1 XAU₮ gives 1,000 XAUE tokens. With a 2% annual yield, reserves grow to 1.02 XAU₮ while the supply stays unchanged. As a result, 1,000 XAUE can later be redeemed for 1.02 XAU₮, providing automatic compounding in gold terms.
Image: Freepik
Leave a Reply