Perfolio is a gold-backed lending platform. You buy gold (XAUT, where each token equals exactly 1 ounce of real physical gold stored in Swiss vaults), then borrow digital dollars (USDT, each worth exactly $1, convertible to your local currency) against your gold. No credit checks needed. No monthly EMI payments. No repayment deadlines. Your gold stays yours throughout. When you repay the loan, you get your gold back. It works like a modern digital gold pawn shop, but without the middleman, the paperwork, or the fees.

Gold (XAUT) is a digital gold token issued by Tether (the same company behind USDT stablecoins). Each gold token (XAUT) represents exactly 1 troy ounce of real physical gold, stored in LBMA-certified vaults in Switzerland. The gold reserves are independently audited every quarter by BDO Italia. Unlike gold ETFs, gold (XAUT) is redeemable for actual physical gold bars. Think of it as a digital certificate of ownership for gold in a vault: you own the gold, XAUT is your proof.

How does borrowing work?

Borrowing on Perfolio works in four simple steps. First, you buy gold (XAUT tokens) through the Perfolio app using your bank transfer or existing digital dollars (USDT). Second, you deposit your gold (XAUT) into the lending vault; think of this as locking your gold as security. Third, you receive digital dollars (USDT, worth $1 each) instantly, up to 77% of your gold's value. Fourth, you convert those digital dollars to your local currency (Indian Rupees, UAE Dirhams, Euros, etc.) and withdraw to your bank account. Your gold remains safely locked in the vault throughout. When you repay the loan, your gold is returned to you.

What interest rate will I pay?

Perfolio charges a variable interest rate starting from approximately 3% per year (APR, or Annual Percentage Rate). This means if you borrow $1,000 for a full year, you would pay about $30 in interest. The rate is not fixed; it goes up or down based on supply and demand in the lending market. You can see your current rate at any time in your Perfolio dashboard. There are no fixed monthly payments; interest accrues daily on whatever amount you have borrowed.

Are there repayment deadlines?

No. There are no repayment deadlines, no EMIs (equated monthly installments), and no fixed repayment schedule. You repay on your own terms, partially or fully, whenever you choose. You could repay after one week, one month, or one year. The only ongoing cost is interest, which accrues daily on your outstanding loan balance. Your gold collateral is returned to you as soon as the full loan amount plus accrued interest is repaid.

Where is my gold stored?

Your gold (XAUT tokens) represents physical gold bars stored in LBMA-certified (London Bullion Market Association) vaults in Switzerland. These are professional-grade precious metals storage facilities, the same standard used by central banks and institutional investors. The gold is fully insured. Tether, the issuer of XAUT, publishes independently audited reserve reports every quarter, conducted by BDO Italia, confirming that every gold token (XAUT) in circulation is backed by a real ounce of physical gold.

What fees does Perfolio charge?

Perfolio charges interest only on the amount you have borrowed, nothing else. There are no origination fees (fees for creating the loan), no account maintenance fees, no deposit fees, no withdrawal fees, and no hidden charges of any kind. You pay interest daily on your outstanding loan balance at the variable market rate, which starts from approximately 3% APR. If you borrow $1,000 for 30 days at 3% APR, you pay roughly $2.50 in total interest.

Is the lending protocol secure?

Perfolio uses an independently audited smart contract as its lending infrastructure. It is a non-custodial lending protocol deployed on Ethereum, one of the most widely used and tested blockchain networks in the world. Non-custodial means no single company (including Perfolio) can access or freeze your funds. The protocol has been independently audited by multiple leading security firms and handles billions of dollars in assets. All transactions are recorded publicly on the Ethereum blockchain, meaning you can verify every deposit, loan, and repayment yourself.

Is Perfolio a cryptocurrency app?

No. Perfolio is a gold lending platform that uses blockchain technology under the hood, similar to how Uber uses GPS technology, but you don't need to understand GPS to take a ride. You interact with gold and money, not with cryptocurrency. The blockchain ensures your transactions are transparent, secure, and instant.

What is USDT and how do I use it?

USDT (Tether USD) is a digital currency worth exactly $1. Think of it as digital dollars that you can send anywhere instantly. When you borrow on Perfolio, you receive USDT. You can then convert USDT to your local currency (Indian Rupees, UAE Dirhams, Euros, British Pounds, and more) through Perfolio's licensed payment provider and withdraw to your bank account.

What does 'digital gold' mean?

Digital gold means you own a token that represents real physical gold stored in a vault. Instead of keeping gold bars at home or in a bank locker, you hold a digital certificate (XAUT token) that proves you own that gold. The advantage: you can buy fractional amounts (as little as $10 worth), trade 24/7, and use your gold as collateral for instant loans. These are things you can't do with physical gold.

How does the lending technology work?

Perfolio's loans are powered by an audited smart contract, which is automated banking software that runs on the Ethereum blockchain. Instead of a bank officer processing your loan (which takes days and involves paperwork), the smart contract processes it in seconds with no human intervention. The protocol has been independently audited by multiple leading security firms and handles billions of dollars in loans.

What is LTV (Loan-to-Value)?

LTV stands for Loan-to-Value ratio. It's how much you can borrow relative to your gold's value. Perfolio allows up to 77% LTV. Example: if your gold is worth $10,000, you can borrow up to $7,700. The remaining $2,300 acts as a safety buffer in case gold price drops. A lower LTV means a safer position.

What happens if gold price drops while I have a loan?

If gold price drops significantly, your loan may become under-collateralized (meaning your gold is no longer worth enough to back your loan). In this case, the lending protocol may automatically sell some of your gold to repay part of the loan. This is called liquidation. Perfolio shows your 'health factor' in real-time so you can take action before this happens: either add more gold collateral or repay part of your loan.

Do I need to understand blockchain or crypto to use Perfolio?

Not at all. Perfolio is designed for people who want to use gold as a financial tool, not for crypto experts. You buy gold, you borrow money, you repay when you want. The blockchain technology works in the background to make everything faster, cheaper, and more transparent, but you never need to interact with it directly.

XAUT Audit Reports Explained: How to Verify Tether Gold Backing

XAUT reserves are attested quarterly by BDO Italia, an independent accounting firm, and the reports are published on Tether's public transparency page at tether.to/transparency. You can verify the attested gold holdings against the live on-chain token supply yourself in under five minutes, using Etherscan and Tether's own published figures. This guide shows you exactly how.

What Is a Proof-of-Reserves Attestation (and How Does It Differ from a Full Audit)?

The word "audit" gets used loosely in crypto. When Tether publishes documents about gold (XAUT) reserves, the reports are technically attestations, not full statutory audits. The difference matters.

A full audit involves an auditor independently verifying every transaction in a period, testing internal controls, sampling underlying records, and forming an opinion on whether financial statements are free from material misstatement. It covers the "why" and "how" of every number.

An attestation (also called an agreed-upon procedures report or a proof-of-reserves report) is narrower. The auditor agrees with the client on a specific set of procedures, executes those procedures on the stated date, and reports whether the numbers it checked matched. For gold token issuers, the key procedure is comparing total token supply against total allocated gold weight in the vault.

Both have value. An attestation tells you: "On this date, at this time, the claimed supply matched the confirmed reserve." It does not tell you what happened between reports or assess the auditor's broader business controls. For a quarterly-published, on-chain-verifiable asset like gold (XAUT), an attestation cadence is the industry standard, and it is meaningful when the procedures are rigorous and the auditor is credible.

As of 2026, gold-backed token issuers publish attestation reports rather than full audits. Approximately 94% of stablecoin and commodity-backed token issuers globally use third-party attestations as their primary reserve verification mechanism.

Who Is BDO Italia and What Is Its Role?

BDO Italia is the Italian member firm of BDO International, a global accounting and advisory network with over 1,700 offices in more than 160 countries. BDO International is consistently ranked among the top five accounting networks worldwide by revenue and global reach.

BDO Italia serves as Tether's independent attestor for both USDT and XAUT reserves. For XAUT specifically, BDO Italia's mandate covers the gold (XAUT) proof-of-reserves process. Its methodology for the XAUT attestation includes the following procedures:

Obtaining direct confirmation from the vault custodian of the total weight and purity of allocated gold bars held on behalf of Tether.
Reconciling bar-level detail (serial numbers, weights, fineness) against Tether's internal records.
Independently querying on-chain token supply on the Ethereum and Tron blockchains at the attestation date.
Comparing confirmed physical gold weight (converted to troy ounces) against total outstanding token supply to confirm the reserve ratio equals or exceeds 100%.
Issuing a written report stating whether the procedures were performed and what the results showed.

BDO Italia does not hold the gold, manage the vault, or have any commercial relationship with Tether beyond the engagement for attestation services. That independence is what gives the report its value. The firm's reputation and professional liability attach to every report it signs.

How to Read a Tether Gold Attestation Report

Magnifying glass auditing a certified gold bar — Quarterly third-party audits by BDO Italia verify that every XAUT token is matched by physically segregated gold in Swiss vaults.

Tether publishes XAUT attestation documents at tether.to/transparency. Each report is a PDF, typically 4 to 8 pages. Here is what to look for when you open one.

Key Fields in the Report

Field	What It Tells You	What to Check
Attestation Date	The point-in-time when the procedures were performed	Confirm the date is within the last 90 days; older reports are still valid for historical reference
Total XAUT Token Supply	Combined outstanding supply across Ethereum and Tron at the attestation date	Note this number; you will verify it against on-chain data
Total Physical Gold (troy oz)	Weight of allocated gold bars confirmed by the custodian at the attestation date	Should equal or exceed the token supply (1 XAUT = 1 troy oz)
Reserve Ratio	Physical gold divided by token supply, expressed as a percentage	Must be at or above 100%; any figure below 100% would indicate under-collateralisation
Custodian Confirmation	Reference to the vault custodian's written confirmation letter	Confirms the auditor received independent third-party confirmation, not just Tether's self-reported figure
Blockchain Query Method	Description of how BDO Italia queried on-chain supply	Should reference a direct blockchain node query or a verifiable block explorer, not a Tether-supplied spreadsheet
BDO Italia Signature	The accountant's stamp and signature	Confirms the document is genuine and issued by the named firm

One thing the report will not contain: bar-level detail published in the PDF itself. Tether publishes individual bar serial numbers and weights separately on its transparency page, but the attestation report references the aggregate. If you want bar-level verification, download the separate bar list and cross-reference against the aggregate.

How to Verify XAUT Backing On-Chain

On-chain verification gives you a real-time check that is independent of any PDF. Here is the step-by-step process for verifying the Ethereum supply of gold (XAUT).

Step 1: Find the XAUT contract address. The official XAUT contract on Ethereum is published on Tether's transparency page and on CoinGecko. Always confirm the address against at least two independent sources before trusting it. As of mid-2026, the Ethereum contract address begins with 0x68749665FF8.

Step 2: Open Etherscan. Go to etherscan.io and search for the XAUT contract address.

Step 3: Read the total supply. On the contract's token tracker page, Etherscan displays the total token supply. This is the live on-chain figure, updated with every mint or burn transaction.

Step 4: Compare against the attestation. Open the most recent BDO Italia report. The total supply figure in the report should match (or be close to) the on-chain supply at the time of attestation. Differences of a few tokens are normal due to normal redemption and issuance activity between the attestation date and today.

Step 5: Check the Tron supply (optional). Gold (XAUT) is also issued on Tron. Tether publishes the Tron supply on its transparency page. The BDO Italia report covers the combined Ethereum plus Tron supply. Add both figures to get the total.

This five-step process takes under five minutes and requires no technical knowledge beyond basic browser use. You are doing what BDO Italia does in its blockchain query procedure, but in real time rather than on a quarterly snapshot.

In Q1 2026, the combined Ethereum and Tron XAUT supply was approximately 289,000 tokens, representing roughly 289,000 troy ounces of allocated gold in Swiss vaults, worth approximately $965 million at prevailing gold prices.

XAUT vs PAXG: Audit Cadence and Methodology Compared

The two largest gold-backed tokens, XAUT (Tether Gold) and PAXG (Paxos Gold), use different verification cadences and different auditors. Understanding the difference helps you assess the relative transparency of each token. For a full product comparison, see our XAUT vs PAXG comparison for 2026.

Factor	XAUT (Tether Gold)	PAXG (Paxos Gold)
Attestation cadence	Quarterly (every 3 months)	Monthly (every month)
Attestor / Auditor	BDO Italia	WithumSmith+Brown
Vault location	Switzerland	London (LBMA vaults)
Regulatory oversight	Tether Ltd., BVI registration	Paxos Trust Company, New York DFS charter
Blockchain availability	Ethereum and Tron	Ethereum only
Bar-level data public	Yes, published on transparency page	Yes, published on Paxos website
Report type	Attestation (agreed-upon procedures)	Attestation (agreed-upon procedures)

PAXG's monthly cadence is more frequent, which means the gap between confirmed and unconfirmed periods is shorter. However, XAUT's quarterly attestations cover a wider blockchain footprint (Ethereum plus Tron) and are backed by BDO Italia's global network credibility. Neither product offers a continuous, real-time audit; both rely on periodic snapshots plus on-chain transparency between reports.

Where Reserve Data Could Go Wrong

Transparency reports are valuable, but they are not foolproof. Understanding the failure modes helps you read reports critically rather than treating them as unconditional guarantees.

Timing gaps. A quarterly attestation captures one point in four. Between attestations, you are relying on on-chain supply data and the issuer's ongoing commitment to maintain reserves. If a significant portion of gold were removed from the vault and replaced before the next attestation date, the report would not capture it. More frequent attestations reduce this risk; continuous proof-of-reserves systems would eliminate it.

Custodian confirmation quality. The attestation is only as strong as the custodian's confirmation letter. If the vault custodian provides inaccurate information to BDO Italia, the auditor may not independently verify every physical bar. Look for attestation reports that describe the specific confirmation procedures, including whether BDO Italia performed independent queries rather than relying solely on custodian-supplied documents.

Commingled vs. allocated gold. Allocated gold means specific bars are assigned to specific clients. Commingled or unallocated gold means the vault holds a pool and clients have claims against it. XAUT is backed by allocated gold, which provides stronger individual claim rights. Confirm this in the attestation report's description of the custody arrangement.

Smart contract mint/burn controls. A sufficiently bad actor could theoretically mint tokens without depositing gold, if the smart contract's mint function is not properly controlled. Review the security page for details on how Perfolio and Tether's contracts manage minting controls and access permissions.

The Trust Stack: From Vault to Token

When you hold gold (XAUT), you are trusting a chain of four layers. Understanding each layer helps you assess where confidence is strong and where it depends on ongoing verification.

Layer 1: The vault custodian. A professional vault operator in Switzerland holds the physical gold bars. The custodian's obligations include maintaining full insurance, segregating client allocations, and providing accurate weight and bar detail to Tether and to auditors on request. The custodian's legal and professional liability underpins the entire chain.

Layer 2: The independent attestor (BDO Italia). BDO Italia independently queries both the custodian's records and the on-chain token supply. It publishes a signed report stating whether the procedures confirm the reserve ratio. BDO's professional reputation and legal exposure attach to every report.

Layer 3: The token issuer (Tether). Tether controls the smart contract's mint and burn functions. It receives gold deposits, mints new XAUT tokens, redeems tokens for physical gold or cash, and publishes all supply data. Tether's commitment to maintaining the 1:1 backing ratio is the operational responsibility layer.

Layer 4: The token itself. The Ethereum or Tron smart contract records balances, allows peer-to-peer transfers, and enables integration with lending protocols like Perfolio's XAUT loan platform. On-chain data is transparent and tamper-resistant; anyone can verify token supply and transfer history.

Each layer introduces a trust assumption. The vault custodian could be fraudulent; BDO Italia could fail to detect it; Tether could mint unbacked tokens; the smart contract could have an undiscovered vulnerability. In practice, all four layers have strong incentives to behave correctly, and the combination of quarterly attestations plus real-time on-chain transparency makes sustained, undetected fraud very difficult to execute.

For additional context on how Perfolio evaluates the security of gold-backed tokens, see our security overview and the glossary definitions for terms used in this article.

Critical Questions to Ask Before Trusting Any Gold Token Audit

Use this checklist whenever you evaluate a gold token's reserve documentation, whether for XAUT or any other product.

Is the attestor independent? The firm should have no commercial relationship with the issuer beyond the specific engagement. Check if the same firm audits the issuer's corporate accounts (a potential conflict).
Is the report publicly accessible? Reports should be downloadable without registration or a paywall. Transparency that requires you to ask for it is not transparency.
Does the report confirm the blockchain query method? The attestor should describe querying the blockchain directly, not relying on issuer-provided supply figures.
Is gold allocated or unallocated? Allocated gold with specific bar serial numbers provides stronger legal protections than a claim against a pooled reserve.
How old is the most recent report? A report more than 90 days old means you are outside the attested window. Check on-chain supply data to bridge the gap.
Does the reserve ratio equal or exceed 100%? Any ratio below 100% means the token is not fully backed at the point of attestation.
Is bar-level data available? Public bar serial numbers allow sophisticated verifiers to cross-check the aggregate with bar-level detail.

Gold (XAUT) passes all seven checks as of the most recent 2026 attestation cycle. The XAUT explainer article covers the broader background on how Tether Gold works for first-time holders.

Frequently Asked Questions

How often does BDO Italia publish XAUT attestation reports?

BDO Italia publishes XAUT attestation reports on a quarterly cadence, meaning approximately every three months. Each report covers the state of reserves at a specific point in time. You can find all published reports on Tether's transparency page at tether.to/transparency. For context, PAXG uses a monthly cadence with a different auditor, WithumSmith+Brown.

Where can I download the latest XAUT audit report?

Visit tether.to/transparency and look for the XAUT section. Reports are available as downloadable PDFs at no cost and without registration. Tether also links to the most recent report from the main XAUT product page at tether.to/xaut.

Is BDO Italia a reputable auditing firm?

Yes. BDO Italia is a member of BDO International, one of the top five global accounting networks by revenue, operating across more than 160 countries. It is a regulated accounting firm subject to professional standards and liability. Its reports carry the same professional weight as those from similarly credentialed firms. The firm does not have a commercial relationship with Tether beyond the attestation engagement.

Can I verify XAUT token supply on-chain without reading the PDF?

Yes. Search for the XAUT contract address on Etherscan (etherscan.io) to see the live Ethereum supply in real time. For Tron supply, Tether publishes the figure on its transparency page. Adding both figures gives you the total outstanding supply, which you can then compare against the physical gold quantity in the most recent BDO Italia report.

What is the difference between an attestation and a full audit for gold tokens?

An attestation is a targeted agreed-upon procedures engagement: the auditor checks specific facts (does the vault hold as much gold as there are tokens?) on a specific date. A full audit covers an entire accounting period, tests internal controls, and forms a broader opinion on financial statement accuracy. Attestations are the industry standard for gold tokens and stablecoins because they provide direct, verifiable evidence on the key question (reserve adequacy) without the scope and cost of a full statutory audit.

Is the gold backing XAUT allocated or unallocated?

XAUT is backed by allocated gold, meaning each XAUT token corresponds to a specific portion of identified physical bars held in Swiss vaults. The bars have serial numbers, weights, and purity grades that Tether publishes on its transparency page. Allocated gold gives token holders stronger legal claims compared to unallocated or pooled arrangements, where you would hold only a general entitlement against the vault's total holdings.

Does using XAUT as collateral on Perfolio affect the backing of my tokens?

No. When you deposit gold (XAUT) as collateral on Perfolio's XAUT loan platform, the tokens move into a smart contract on Ethereum. The tokens remain on-chain and the physical gold backing them remains in the Swiss vault. The attestation covers all outstanding XAUT regardless of whether individual tokens are in personal wallets, on exchanges, or locked in lending protocols. Your deposit does not change the 1:1 gold backing.

What happens if the XAUT reserve ratio falls below 100%?

If a BDO Italia report showed a reserve ratio below 100%, it would mean the outstanding token supply exceeded the confirmed gold holdings at the attestation date. This would be a significant red flag, likely triggering regulatory scrutiny, exchange de-listings, and a confidence crisis. To date, all published XAUT attestation reports have confirmed a reserve ratio at or above 100%. The transparency of the on-chain token supply makes it very difficult to sustain under-collateralisation without detection, because anyone can check the token supply at any time.