Tether Gold [XAU₮], A Stablecoin Backed by Actual Gold Launched by USDT Founders

Tether Gold [XAU₮], A Stablecoin Backed by Actual Gold Launched

The rush to tie cryptocurrency to gold is heating up in 2020. USDT founders recently announced Tether Gold (XAUT), a stablecoin backed by actual gold.

The company announced XAU₮ on January 24th. The new stablecoin is pegged to physical gold coins (XAU).

Tether is not the only crypto firm to tie a native token to a commodity such as gold. However, they are first blockchain-based project to peg a digital currency (stablecoins) to a traditional one (gold).

Tether Gold and Physical Gold Value Equation

According to internal documents, each XAU₮ stablecoin equals to 31.103 476 8 grams of gold. This is referred to as “troy fine ounce” in the gold market.

XAU₮ is an ERC-20 (Ethereum blockchain) and RC20-based (TRON blockchain) stable coin. It is currently available for purchases on crypto exchanges and can be transferred to a Tether-based wallet.

Does TG have access to physical gold

In addition to XAUT’s physical gold pegging, the company has 100% control of the gold XAUT is physically pegged to, offers to customers zero custody fees. Presently, the gold is stored in secured vaults located in Switzerland.

“There is growing demand for digital exposure to physical gold, making the launch of XAUT a timely innovation in the crypto ecosystem,” said Paolo Ardoino, CTO at Tether. “Tether Gold provides the combined benefits of both physical and digital assets, removing the drawbacks of holding gold in more traditional ways, such as high storage costs and restricted access.”

Tether is at the forefront of crypto adoptions. The company helps businesses who accept or which to take crypto as payments, as well as traders looking to protect cryptoassets. Tether Gold is a good investment for those who wish to own gold without having it physically.

By converting cryptoassets to a stablecoin such as XAUT, holders are less exposed to market volatility. Tether is already trading the following currencies: Chinese yuan (CNH₮), Euro (EUR₮), and the United States dollar (USD₮).

Tether Gold (XAUT) is owned and operated by parent company, TG Commodities Limited.

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