In the fast-paced world of cryptocurrency, Tether Gold (XAUT) stands out as a unique asset, representing a digital version of physical gold. As an asset-backed token, XAUT's value is intrinsically linked to the price of gold, providing traders with an innovative way to engage with the precious metal within the digital realm.
What is Tether Gold
Tether Gold is a digital asset pegged to gold’s value. Each unit of the project’s token is an equivalent price of an ounce of this valuable asset. It can be described as a stablecoin, albeit backed by real gold, not fiat currencies. This gold-pegged stablecoin is issued by Tether, the company behind the leading US dollar-based stablecoin USDT.
Gold has retained its value throughout the years and has become an ideal option for most people to pass their wealth to the next generation. Tether Gold aims to piggyback on this and deliver an innovative platform that offers you ownership of gold without the numerous drawbacks associated with the physical asset, such as location limits concerning purchasing and owning gold. With this platform, users hold physical and digital assets.
The Tether Gold team
Tether Gold was developed by a group of Bitcoin supporters and enthusiasts keen on facilitating the seamless use of traditional currencies in a digital capacity. The team comprises renowned experts from Tether, such as JL Van Der Velde (CEO), Giancario Devasini (CFO), Stuart Hoegner (General Counsel), Paolo Ardoino (CTO), Leonardo Real (CCO), and Claudia Lagorio (COO).
How does Tether Gold work
Tether Gold works like a fiat currency-backed stablecoin, with a few differences. When a user buys the project’s native token, XAUT, it assigns ownership of one troy ounce of gold to the purchased token. The gold is then safely stored in a vault on the user’s behalf. In essence, when someone buys the native token, they immediately own a physical gold asset which Tether safeguards and keeps custody of. According to the team, there is a minimum purchase of 50 tokens.
The nature of physical gold makes the redemption of funds a bit complicated. Tether Gold holders can choose to redeem their tokens for ounces of physical gold or request TG Commodities Limited to sell them for cash. Either of these options attracts a transaction fee.
Tether Gold can deliver physical gold to any location in Switzerland.
Tether Gold’s native token: XAUT
XAUT is the project’s native token. It represents ownership of physical gold securely stored somewhere in the world. It is an ERC-20-compatible token, meaning it can be deployed on the Ethereum network.
Each holder receives a unique serial number associated with their gold holdings, which is required during the ownership verification process. This verification process ensures the authenticity and ownership of the real gold backing the digital asset, offering transparency and security to XAUT holders.
XAUT tokenomics
There is a total and circulating supply of 246,500 tokens. XAUT, according to the website, will guarantee holders an opportunity to trade and own real gold. Like USDT, there is no maximum supply of XAUT, as the company continually mints additional tokens whenever a customer purchases them. However, one significant difference from regular stablecoins is that XAUT can be redeemed for physical gold or sold for cash.
XAUT use cases
XAUT offers several use cases as a token representing the value of gold. Firstly, it serves as a store of value, providing users with exposure to the stability and potential appreciation of physical gold. Additionally, XAUT caters to customers who wish to buy gold but cannot physically store them, offering a convenient and secure alternative for those seeking exposure to the precious metal.
