Tether, the team behind the most successful stablecoin Tether, has now launched Tether Gold (XAUt), a stablecoin that is backed by physical gold. Currently, the team has decided to launch the asset for only Ethereum and Tron blockchains. Each token is backed by one ounce of London Good Delivery gold and is available as an ERC-20 token.
Tether Gold
As per Tether’s recent announcement, tether has now launched a new stablecoin following the success of USDT. USDT is the largest stablecoin by market cap and is the most popular US dollar-pegged token. With the announcement of Tether Gold, the company hopes to take things further with Tether Gold.
Holders of Tether GOld will be given ‘undivided’ ownership of gold on specified Gold bars. This gold can be verified through its weight, purity and serial number that would be unique for every set of gold. As per the announcement holders of XAUt tokens would be allowed to verify the gold bars they own through a website. Moreover, XAUt tokens are being launched as ERC-20 tokens on Ethereum and TRC20 tokens on the TRON blockchain.
Although the idea of connecting crypto’s liquidity with Gold’s value might be tempting, investors need to consider the barriers attached. In order to purchase XAUt, investors would need to have a verified account with TG Commodities Limited and would need to purchase a specific amount of gold.
Investors need to purchase at least 50 fine troy ounces, an amount equal to 50 XAUt tokens. At recent prices, the value for this amount of gold is around 75,000 dollars. Furthermore, users can only pay through US dollars. While there is an absence of a custody fee, investors would have to pay a one-time 25 basis pint fee while purchasing the tokens.
Featured image by pixabay.
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