Touchstone, the credit arm operating under the XAUE brand, has joined Morpho’s lending protocol as a curator specializing in gold-backed credit markets. XAUE launched on April 20, 2026 on Ethereum as a treasury layer designed to generate yield from Tether Gold (XAU₮), a token backed by physical gold held in Swiss vaults. Initial seed commitments totaled approximately 16,052 XAU₮, valued at around $76 million. The integration enables XAUE to leverage Morpho’s established DeFi lending markets through its modular, curator-driven architecture, where risk parameters like loan-to-value ratios can be set independently for gold assets. Morpho’s existing Trinity Gold USDC Vault displays a 62.5% liquidation loan-to-value ratio, reflecting a conservative approach suited to this low-volatility asset class.
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