Tether Gold (XAUT) and the Rise of Tokenized Gold in South Korea: How Upbit and Bithumb Are Reshaping Access to Gold for Retail and Institutional Investors

The evolution of gold investment has taken a digital turn with the emergence of tokenized assets like Tether Gold (XAUT). In South Korea, where cryptocurrency adoption is among the highest globally, platforms like Upbit and Bithumb are playing a pivotal role in democratizing access to gold through XAUT trading pairs. By combining the tangibility of physical gold with the flexibility of blockchain technology, XAUT is redefining how both retail and institutional investors engage with this age-old asset class.

XAUT: A Digital Bridge to Physical Gold

Tether Gold (XAUT) is a blockchain-based token representing one troy ounce of physical gold stored in Swiss vaults according to Tether. Unlike traditional gold investments, which require physical storage and are subject to logistical constraints, XAUT offers 24/7 trading, instant settlement, and divisibility down to 0.000001 troy ounces as per the official documentation. This programmable, redeemable token allows investors to own and trade gold with the same ease as cryptocurrencies, eliminating barriers like high minimums and storage costs.

Recent expansions into cross-chain capabilities and decentralized finance (DeFi) integration have further enhanced XAUT's utility. For instance, its launch on the TON blockchain in 2025 enables seamless transfers and broader interoperability. These features position XAUT as a hybrid asset, bridging the gap between traditional and digital markets.

Upbit and Bithumb: Gateways to Tokenized Gold in South Korea

South Korea's crypto exchanges, particularly Upbit and Bithumb, have become critical infrastructure for XAUT adoption. Bithumb's strategic listing of XAUT for direct trading against the South Korean won (KRW) in late 2025 marked a significant milestone. This move allowed retail investors to access tokenized gold without navigating foreign exchanges or complex fiat conversion processes. Similarly, Upbit's announcement of XAUT trading on January 1, 2025, signaled the platform's commitment to expanding its offerings into precious metals.

While XAUT's trading volume on these exchanges remains modest compared to global figures as of late 2025, the mere availability of XAUT pairs on Upbit and Bithumb has catalyzed interest. For context, Bithumb's XAUT/KRW pair contributed to a broader surge in altcoin trading in December 2025, with XRP alone recording $84.7 million in volume. This trend suggests that tokenized gold is gaining traction as a complementary asset to traditional cryptocurrencies.

Fee Structures and Market Dynamics

The fee structures on Upbit and Bithumb further underscore their role in facilitating XAUT adoption. Upbit charges a base trading fee of 0.2% for both makers and takers, while Bithumb offers lower fees, ranging from 0.04% to 0.25%, depending on the transaction type according to market data. These competitive rates, combined with tiered discounts for high-volume traders, make XAUT an attractive option for active investors.

For institutional players, the liquidity provided by XAUT's global trading volume-$1.64 million in 24 hours as of late 2025-offers a compelling case for portfolio diversification. The ability to redeem XAUT for physical gold in 50-ounce increments as per the official fee schedule adds a layer of tangibility that aligns with institutional risk management strategies.

Regulatory Context and Market Challenges

South Korea's regulatory environment, however, introduces complexities. The Financial Services Commission (FSC) has imposed caps on crypto lending interest rates and ownership restrictions on major exchanges like Upbit and Bithumb. These measures aim to curb speculative behavior but may also limit the leverage and product innovation available to XAUT traders. Additionally, the 60% decline in Upbit and Bithumb's overall trading volume in December 2025 highlights the volatility inherent in the crypto market, which could impact XAUT's adoption trajectory.

The Future of Tokenized Gold in South Korea

Despite these challenges, XAUT's integration into South Korea's crypto ecosystem is reshaping gold accessibility. By enabling fractional ownership and eliminating physical storage requirements, XAUT has lowered entry barriers for retail investors. For institutions, the asset's liquidity and redeemability provide a hedge against market volatility. As of December 1, 2025, XAUT's 24-hour trading volume reached $15.96 billion, a testament to its growing appeal.

The strategic moves by Upbit and Bithumb to list XAUT reflect a broader industry shift toward tokenizing real-world assets. While regulatory hurdles and market fluctuations persist, the convergence of blockchain technology and traditional commodities is likely to accelerate in 2026. For investors, this means a new frontier where gold's time-tested value meets the innovation of decentralized finance.