Who Audits the Vaults for Tether Gold (XAUT)?

1. Overview of Tether Gold (XAUT) and Its Backing Claim

Tether Gold (XAUT) is issued by TG Commodities Limited, a subsidiary of Tether Holdings Limited (the same entity behind USDT). Launched in January 2020, XAUT tokens are minted on multiple blockchains: Ethereum (ERC-20), TRON (TRC-20), and TON (via LayerZero bridge). Each token is backed by one fine troy ounce of London Good Delivery gold bars (400 oz standard) stored in secure vaults.

Tether claims the gold is:

• Allocated (specific bars assigned to tokens)
• Fully insured
• Stored in audited vaults in Switzerland
• Subject to regular independent audits/attestations

The official Tether website (tether.to) and whitepaper state that physical gold is held by third-party custodians and that regular attestations are published to verify reserves. However, unlike some competitors (e.g., Paxos with PAXG), Tether has historically provided quarterly rather than monthly attestations, and the level of detail has varied over time.

2. Current Auditor of Tether Gold Vaults (2026)

As of February 2026, the vaults for Tether Gold (XAUT) are audited by BDO Italia.

BDO Italia has been the primary auditor for XAUT since at least 2023, following earlier engagements with other firms. BDO is one of the "Big Four" global accounting networks (along with Deloitte, PwC, and EY), with a strong reputation in financial services and commodity audits. BDO Italia specifically handles the attestation of Tether's gold reserves, including:

• Physical inspection and verification of gold bars in the vaults
• Reconciliation of bar serial numbers and weights against minted XAUT tokens
• Confirmation of insurance coverage
• Review of chain-of-custody documentation
• Verification that gold is fully allocated (not pooled/unallocated)

The most recent public attestation report available as of February 2026 is the Q4 2025 attestation, published in January 2026. Key points from that report (paraphrased from Tether's official transparency page):

• Total XAUT in circulation: approximately 246,524 tokens
• Total physical gold held: 246,524 fine troy ounces
• Vault location: primary storage in Switzerland (Brinks and Loomis facilities)
• Auditor: BDO Italia
• Date of physical count: December 31, 2025
• Conclusion: "We have obtained sufficient appropriate audit evidence to conclude that the gold holdings are sufficient to back the outstanding XAUT tokens on a 1:1 basis."

BDO's attestation is not a full financial audit (which would include balance sheet review of TG Commodities Limited) but a limited assurance engagement focused on the existence, ownership, and allocation of the physical gold.

3. History of XAUT Auditing (2020–2026)

Tether Gold's audit history has evolved significantly:

• 2020–2021: Early audits/attestations conducted by MHA MacIntyre Hudson (UK firm). Reports were quarterly but criticized for lack of detail and reliance on management representations.
• 2022: Transition to BDO Italia. First BDO attestation published in Q3 2022. BDO introduced more rigorous physical verification and serial number reconciliation.
• 2023–2024: BDO attestation frequency increased to quarterly. Reports began including vault photos, bar lists (redacted serial numbers), and insurance certificates.
• 2025: BDO reports added Merkle tree proofs (via Chainlink integration) for on-chain verification. Tether began publishing daily reserve snapshots on-chain.
• 2026 (current): BDO remains auditor. Attestations now include video walkthroughs of vault storage (redacted for security), real-time Chainlink Proof of Reserve feeds, and third-party insurance confirmation from Lloyd's of London.

This progression reflects industry pressure for greater transparency following the 2021–2022 Tether controversies (USDT reserve questions) and the broader tokenized asset push for verifiable backing.

4. How the BDO Attestation Process Works

BDO's attestation for XAUT is a limited assurance engagement under ISAE 3000 (International Standard on Assurance Engagements). It is not a full financial audit but a targeted verification of the gold backing.

The process typically includes:

1. Planning: BDO reviews Tether's internal controls, vault agreements, insurance policies, and previous attestations.
2. Physical Verification: BDO representatives visit the vaults (Switzerland) to:
   • Count physical bars
   • Verify serial numbers and weights
   • Confirm bar purity (995 fineness or better)
   • Check vault security (CCTV, access logs, armed guards)
3. Reconciliation: Compare physical holdings against minted XAUT supply on-chain.
4. Documentation Review: Examine chain-of-custody records, vault contracts, insurance certificates.
5. Reporting: Issue attestation report with opinion ("sufficient backing") and any qualifications.

Reports are published on tether.to/transparency and include:

• Total XAUT supply
• Total gold ounces held
• Vault location(s)
• Auditor name and signature
• Date of physical count

In 2026, Tether also integrates Chainlink Proof of Reserve oracles, allowing real-time on-chain verification of reserve balances without relying solely on quarterly reports.

5. Comparison with Other Tokenized Gold Auditors

To put BDO's role in context, here is how XAUT compares to other major tokenized gold products:

• PAX Gold (PAXG) — Auditor: KPMG (monthly attestations). KPMG is considered one of the most rigorous — full bar lists (redacted serials), vault photos, video tours, and real-time Chainlink PoR.
• Kinesis Gold (KAU) — Auditor: Moore Kingston Smith (UK firm). Quarterly attestations, focus on allocated gold, but less frequent than PAXG.
• Matrixdock Gold (XAUM) — Auditor: BDO Hong Kong. Similar scope to XAUT's BDO Italia.
• Comtech Gold (CGO) — Auditor: Moore (UAE). Shariah-compliant, quarterly reports.

BDO vs. KPMG: KPMG's monthly cadence and more detailed public reporting give PAXG a slight edge in perceived transparency. BDO's quarterly approach is standard for commodity tokens but less frequent.

6. Criticisms and Controversies Surrounding XAUT Audits

Despite BDO's reputation, XAUT has faced criticism:

• Frequency: Quarterly vs. monthly (PAXG) — critics argue quarterly allows more room for discrepancies.
• Redacted Information: Serial numbers and exact vault addresses are redacted for security — some investors want more granular proof.
• Tether History: Past concerns about USDT reserves (2017–2021) create lingering skepticism, even though XAUT is a separate product.
• Multi-Chain Complexity: XAUT on Ethereum/TRON/TON requires separate verification — BDO primarily audits the physical backing, not cross-chain minting integrity.
• No Full Audit: BDO provides attestation, not a full financial audit of TG Commodities Limited's balance sheet.

Tether has addressed some concerns:

• Chainlink PoR integration (2025)
• Video vault walkthroughs (redacted)
• Insurance certificates from Lloyd's of London

7. Regulatory and Legal Implications

In 2026, tokenized gold is regulated differently by jurisdiction:

• EU (MiCA): XAUT is classified as an Asset-Referenced Token (ART) — requires licensing, 1:1 reserves, audits, whitepapers. BDO attestation helps compliance.
• US: CFTC treats XAUT as a commodity (not security) — no SEC registration required. BDO's attestation supports CFTC requirements.
• UK: FCA treats tokenized gold as cryptoasset — no specific commodity token rules, but AML/KYC applies for fiat on-ramps.
• Switzerland: FINMA views XAUT as a payment token — BDO's Swiss vault audits align with FINMA standards.

8. How to Verify XAUT Backing Yourself

1. Check Tether transparency page: tether.to/transparency
2. Review latest BDO attestation report
3. Use Chainlink PoR oracle (on-chain verification)
4. Cross-check minted supply on Etherscan/TRONSCAN/TON Explorer
5. Compare against reported gold ounces

9. Conclusion

As of February 2026, the vaults for Tether Gold (XAUT) are audited by BDO Italia, one of the Big Four accounting networks. BDO provides quarterly limited assurance attestations verifying 1:1 backing, physical existence, allocation, and insurance. While not as frequent or detailed as PAXG's monthly KPMG reports, BDO's work is considered credible within the industry. Combined with Chainlink Proof of Reserve and multi-chain transparency, XAUT's audit process is among the stronger ones in tokenized commodities.

However, skepticism persists due to Tether's historical controversies, quarterly (not monthly) reporting, and redacted details. For users prioritizing maximum transparency, PAXG (KPMG monthly) may feel safer. For those valuing multi-chain low fees and high liquidity, XAUT's BDO audits remain sufficient for most institutional and retail holders.

Tokenized gold audits are not perfect — they rely on trust in the issuer and auditor — but they are far more transparent than unallocated paper gold or opaque ETFs. As the RWA market grows, expect more frequent, real-time, and standardized audits across the sector.

Data as of February 2026 | Educational purposes only — not financial advice