Stablecoin mammoth Tether Ltd. has quite recently propelled a gold-supported digital currency, which is value pegged to the valuable metal. The news was reported in a Jan. 23 web post.
Every token of Tether Gold, or XAUT, is truly upheld by one troy fine ounce of gold. Right now, there are 3990.225 XAUT available for use, implying that the market top of the new digital money is around $6.3 million.
Despite the fact that trades must purchase at any rate 50 XAUT ($78,500) worth of Tether Gold, general financial specialists can purchase little portions of the token through a trade.
Tether Gold’s Practical Features
Bitfinex, Tether’s sister organization, has become the main trade to add Tether Gold to its postings. XAUT is right now exchanging on the trade at generally $1,570.
Tether flaunts that its guarantee is profoundly protected. Its gold stores are held in a Swiss vault, with “top tier security and against danger measures,” as indicated by the declaration.
Coin holders can look into the sequential number of their doled out gold bars by means of Tether’s site. Without a review, this isn’t full confirmation that Tether claims the bar being referred to, yet it gives financial specialists some degree of affirmation.
Tether additionally offers recovery choices for the individuals who hold whole tokens. Speculators can have their gold genuinely conveyed or reclaimed for money.
Facing the Stablecoin Competition
Tether Gold is not the only coin of its type. Paxos, a crypto exchange company, launched a similar stablecoin called PAX Gold last September.
Dozens of other minor projects are also attempting to introduce a gold-backed crypto currency, but so far, most have had little success.
Digix, one of the most successful gold-backed coins, briefly saw high trading volumes in August 2018 and January 2019. However, demand for DGX is generally low, and users voted to have the project’s treasury holdings returned to investors this month.
Despite the potential offered by gold-backed stablecoins and other alternatives, dollar-backed stablecoins such as USDT remain the most popular option. This is either due to Tether’s first-mover advantage or due to the U.S. dollar’s general popularity.