- Bitfinex, has launched XAUT trading, and one-quarter of the ERC-20 supply has already moved to Bitfinex.
- Bitfinex has also used Tether reserves to cover a liquidity shortfall after facing issues with its payment provider, Crypto Capital Corp.
- One XAU₮ token is equal to one troy fine ounce of gold on a London Good Delivery gold bar.
As per news conveyed through a press release on January 23rd, Tether now supports a gold-backed stablecoin, which goes by the name Tether Gold (XAU₮). This token equals to the ownership of one troy fine ounce of physical gold. Currently, it worth approximately $1,550.
The press release also states that the funds will be backed by physical gold, which held in Switzerland Vault. As per Tether, this gold offering is the only product among its competition that is not going to charge any custody fees.
Tether also invited all exchanges with the hope of supporting the new token to contact the company. As per the blockchain information for the Ethereum contract, there is currently an outstanding supply of almost 4,000 tokens. This would equal a $6.2 million market capitalization.
The cryptocurrency exchange, Bitfinex, has launched XAUT trading, and one-quarter of the ERC-20 supply has already moved to Bitfinex. Since Bitfinex is a closely-affiliated company to Tether, the news was not exactly shocking.
It quite expected that Bitfinex would be the first to offer the new token. Ever since September 2019, ideas and plans for commodity-backed Tethers have been running in full swing.
Tether is a frequent target of criticism when it comes to its opaque reserve management. One high-profile class action lawsuit has alleged that the company has made use of it to manipulate the market in 2017.
Additionally, Bitfinex has also used Tether reserves to cover a liquidity shortfall after facing issues with its payment provider, Crypto Capital Corp.
XAU₮ is a digital asset that is offered by TG Commodities Limited. One XAU₮ token is equal to one troy fine ounce of gold on a London Good Delivery gold bar.
The holders of XAU₮ attain combined benefits of both physical and digital assets. XAUt token holders would be able to enjoy ownership of gold and simultaneously also avoid drawbacks associated with physical gold, like the high storage costs and limited accessibility.
Tether Gold (XAU₮) serves as the only product among the competition, which offers zero custody fees along with having direct control over the physical gold storage. It is secure in a Switzerland vault, having best in class security and anti-threat measures.