Paolo Ardoino Reveals Major Breakthrough in Tokenized Gold Cross-Border Efficiency

Tether’s chief executive Paolo Ardoino recently shared compelling data showcasing the transformative potential of blockchain-based gold transfers. Over the past six months, the platform has facilitated the movement of 94 tons of gold on-chain, with transaction costs amounting to just 0.0016% of the total value. This remarkable efficiency metric underscores a fundamental shift in how institutional-grade assets can be transferred globally.

The Cost Differential That Changes Everything

When compared to conventional banking infrastructure for physical gold transport, the numbers tell a striking story. Central banks and precious metals dealers traditionally invest millions annually in logistics, insurance, and security protocols to move gold between vaults. Paolo Ardoino’s announcement highlights how on-chain settlement eliminates these overhead burdens entirely. The 0.0016% fee structure stands in stark contrast to the double-digit percentage costs embedded in traditional cross-border precious metals transactions, where regulatory compliance, intermediaries, and physical handling add layers of expense.

Instant Settlement Reimagines Global Asset Movement

Beyond cost reduction, tokenized gold enables near-instantaneous settlement—a capability that legacy systems cannot replicate. In traditional banking, gold transfers between countries can take weeks due to regulatory verification, physical transportation logistics, and banking hour constraints. Blockchain-based transfers, by contrast, occur within minutes, allowing institutions to respond to market movements in real time and optimize their treasury operations without friction.

XAUT: Bridging Physical Gold and Digital Ownership

XAUT, Tether’s tokenized gold product, operates as the infrastructure enabling this shift. Each token represents a direct claim on physical gold held in secure vaults, with full transparency on the blockchain. Institutions and investors can now transfer gold ownership across borders without surrendering security or experiencing settlement delays—a capability that Paolo Ardoino and his team have proven viable at significant scale.

The implications extend beyond cost savings. As more institutional participants recognize that tokenized assets can deliver both security and efficiency, blockchain-based settlement infrastructure increasingly challenges the assumptions underlying traditional financial infrastructure for commodity transfers.