Tether is now supporting a gold-backed stablecoin, Tether Gold (XAU₮), in line with a Jan. 23 press release. One token represents possession of 1
Tether is now supporting a gold-backed stablecoin, Tether Gold (XAU₮), in line with a Jan. 23 press release. One token represents possession of 1 troy high-quality ounce of bodily gold, at the moment price roughly $1,550.
The brand new product is on the market as an ERC-20 token on the Ethereum blockchain, in addition to a TRC20 token on Tron (TRX).
The funds are stated to be backed by bodily gold held in a “Switzerland vault,” the press launch reads. Based on Tether, its gold providing is the one product amongst its competitors that doesn’t cost custody charges.
Tether has additionally invited all exchanges wishing to assist the brand new token to contact the corporate. Blockchain info for the Ethereum contract exhibits that there’s at the moment an impressive provide of just about 4,000 tokens, which might be equal to a $6.2 million market capitalization.
Bitfinex has already launched XAUT trading, with one quarter of the ERC-20 provide having been moved to Bitfinex. As a closely-affiliated firm to Tether, it was anticipated for Bitfinex to be the primary to supply the brand new token.
Plans for commodity-backed Tethers had been in full swing since a minimum of September 2019.
Tether has typically been criticized for its opaque reserve administration, with one high-profile class motion lawsuit alleging that the corporate used this to manipulate the market in 2017.
As well as, Bitfinex reportedly used Tether reserves to cowl a liquidity shortfall following issues with its cost supplier, Crypto Capital Corp.