$48M in tokenized gold deployed by Aurelion to XAUE yield-generating protocol
Through the XAUE protocol, investors can generate returns on their tokenized gold holdings via trading and lending mechanisms while retaining their position in the base asset.
A Nasdaq-listed entity called Aurelion, which is constructing a treasury backed by Tether Gold, has committed 10,000 units of the digital asset, representing approximately $48 million in value, to a recently unveiled protocol created to produce yield on gold-backed tokens.
The decentralized finance platform, known as XAUE, was launched this week by the Aurise Foundation as a treasury infrastructure layer for Tether Gold, enabling gold-backed tokens to participate in yield-producing strategies while preserving exposure to the precious metal itself.
The company Aurelion represents a rebrand of asset and wealth management firm Prestige Wealth and is establishing Tether Gold as its core reserve holding. During October 2025, the organization secured $150 million in capital, comprising a $100 million private investment in public equity transaction alongside a $50 million debt financing arrangement, to fund the strategic initiative.
Based on the initial disclosure from the Aurise Foundation released on Wednesday, Antalpha, a provider of digital asset financial services, was also identified among ecosystem collaborators that contributed a total of 16,052 XAUT, equivalent to approximately $76 million, to establish initial liquidity for the protocol.
The XAUE platform produces returns through approaches including institutional lending arrangements and quantitative trading operations, with earnings manifested through an expansion in the gold collateral per token instead of being paid out separately.
Operating on the Ethereum blockchain, the protocol employs a fixed-supply mechanism, where deposited XAUT tokens are transformed into XAUE at a conversion rate of 1,000:1. Within this framework, reserve holdings may expand progressively as returns accumulate while the total token supply stays constant.
Participants have the ability to redeem XAUE tokens for the underlying gold-backed assets. Participation is restricted to whitelisted, KYC/KYB-verified institutional actors in approved jurisdictions, according to the foundation's statement.
Following the deployment, Aurelion announced it will maintain a total position of 33,318 units of Tether Gold, which includes 10,000 units allocated to XAUE and 23,318 units maintained outside the protocol environment.
Shares of Aurelion (AURE) experienced an increase of approximately 2.6% during midday trading sessions, based on data from Yahoo Finance.
Tokenized gold transitions toward yield-generating frameworks
Historically, gold has been classified as an asset that does not generate yield, providing investors with price participation without producing ongoing income. However, tokenization, which involves representing tangible assets such as gold on distributed ledger networks, is starting to enable innovative frameworks that produce yield while preserving exposure to the base commodity.
During March, cryptocurrency trading platform Bybit unveiled a yield-generating product connected to Tether Gold, enabling participants to accumulate interest on tokenized gold holdings while retaining exposure to the precious metal asset.
Within the same month, tokenization infrastructure provider Theo launched a yield-producing framework supporting its gold-linked stablecoin thUSD, utilizing deposited capital to acquire tokenized gold while concurrently establishing short positions in gold futures contracts to offset price movement risk.
In April, decentralized finance platform Altura rolled out an onchain gold arbitrage mechanism that channels user capital into short-duration physical gold transactions, seeking to capture returns from pricing inefficiencies instead of sustained exposure to physical bullion.
The tokenized commodities sector remains predominantly focused on gold-backed digital assets, which traditionally deliver price participation without generating yield. Information from RWA.xyz indicates the sector stands at approximately $5.25 billion, with Tether Gold and Paxos Gold representing the bulk of the marketplace.
