HONG KONG — Tether Gold (XAUT), a digital token, backed by physical gold, has hit a new milestone as it’s market capitalization surpasses $500 million for the first time.
From ancient civilizations, humans have used gold as money and a store of value. Since then, and especially in times when the overall macro market has been in distress, gold has been used as a hedge.
Launched in 2020 by TG Commodities Limited, Tether Gold (XAU₮) is a stablecoin that provides ownership on a 1:1 basis of one fine troy ounce of gold on a physical bar of gold that meets the Good Delivery standard of the London Bullion Market Association (LBMA).
This technology allows access to a stablecoin that provides ownership of physical gold while avoiding the drawbacks associated with physical gold, such as high storage cost and limited accessibility.
XAU₮ tokens can be fractionated up to six decimal places (i.e. in increments as small as 0.000001 troy fine ounce).
Tether Gold tokens provide undivided ownership rights to gold on the specified gold bar(s). The allocated gold is identifiable with a unique serial number, purity and weight, so the XAU₮ holders can easily check the details of the gold bars associated with their address.
Owning physical assets on the blockchain provides users with the combined benefits of both physical and digital assets. As a XAUt token holder users are able to enjoy ownership of gold while avoiding drawbacks associated with physical gold, such as high storage costs and limited accessibility.
Another advantage is the constant availability of a digital token. Tether Gold tokens are available on markets operating 24 hours a day, seven days a week. It means that when the traditional markets for gold are closed, it’s still possible to buy or sell Tether Gold tokens.
With Tether Gold tokens users have the possibility to redeem them for physical gold or USD fiat currency.
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