Tether has announced it is now supporting Tether Gold (XAU₮), a gold-backed stablecoin.

In a 23^rd January press release, Tether confirmed it now supports the stablecoin, each of which represents ownership of one troy fine ounce of physical gold (worth around €1,550 at time of writing).

Tether Gold (XAU₮) is available as an ERC-20 token on the Ethereum blockchain or a TRC20 token on Tron (TRX), and said to be backed by physical gold held in a Swiss vault.

According to Tether it is the only such product not charging custody fees and boasting direct control over the physical gold storage, and is the “best way to hold Gold.”

Blockchain information shows an outstanding supply of nearly 4K tokens, giving it a market captilisation at todays gold prices of over $6m.

It seems 25% of the XAU₮ ERC-20 supply has already been moved to Bitfinex, which is expected to the first exchange to offer the new token. Tether has also invited other exchanges to contact them if they are interested in supporting the new gold-backed token.

AYO.NEWS says:

This is an intriguing product for sure, but many people are still deeply suspicious of the Tether-Bitfinex relationship, with allegations of market manipulation dating back to 2017, and the controversial alleged use of Tether reserves to makeup for a liquidity shortfall at Bitfinex when it was having problems with payment provider Crypto Capital Corp. Given this, its easy to see why some may not have faith in those Swiss gold deposits!

Staying with Tether, but on a distinctly lighter note, just yesterday we reported that MindGeek’s flagship adult entertainment video sharing site Pornhub had added Tether as a payment option.   

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

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