Tether is now supporting a gold-backed stablecoin, Tether Gold (XAU?), in response to a Jan. 23 press launch. One token represents possession of 1 troy advantageous ounce of bodily gold, presently price roughly $1,550.
The 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. According to 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 help the brand new token to contact the corporate. Blockchain info for the Ethereum contract reveals that there’s presently an excellent provide of just about 4,000 tokens, which might be equal to a $6.2 million market capitalization.
Bitfinex has already launched XAUT buying and selling, 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 at the least September 2019.
Tether has usually been criticized for its opaque reserve administration, with one high-profile class motion lawsuit alleging that the corporate used this to govern the market in 2019.
In addition, Bitfinex reportedly used Tether reserves to cowl a liquidity shortfall following points with its cost supplier, Crypto Capital Corp.