Tether Gold Cryptocurrency Secured by Gold

Tether, which develops the world's largest stablecoin of the same name (USDT), has launched the Tether digital assetGold, backed by gold. According to the company, XAU ₮ will be available on both Ethereum and TRON and will represent one troy ounce of gold.

The XAU token will involve ownership of onetroy ounce of physical gold of the world Good Delivery standard. The company claims that the token is the only crypto asset that guarantees direct control over gold storage. All XAU tokens will be stored in a vault in Switzerland, which has best-in-class security and threat protection measures.

Additional information about which bankgold bars will be stored, not yet, however, according to Tether, it is the only product that offers zero storage fees. However, a commission is charged for the purchase and exchange of tokens.

Tether Gold will be executed as perthe ERC-20 standard of the Ethereum blockchain, and in the form of a TRC20 token on the TRON blockchain. Users can transfer the issued coin to any address on the network from their Tether wallets.

The gold-backed cryptocurrency will be issued by TG Commodities Limited, a UK-based wholesaler of metals and metal ores.

According to Tether, XAU ₮ was launched in response togrowing demand for the digitalization of physical gold. Tether Technical Director Paolo Ardoino called this project “timely innovation in the crypto-ecosystem”:

«Tether Gold combines the advantages of bothphysical and digital assets, eliminating the disadvantages of storing gold in traditional ways, with its inherent storage costs and limited access.

Tether Gold says that XAU ownerswill be able to exchange their tokens for gold provided that they pass the verification prescribed by TG Commodities Limited and have a “minimum amount of XAU ₮."

This token is not intended for the average personretail investor, as the minimum purchase is 50 XAU₮ or 50 ton ounces, which is worth approximately $75,000 (last month's prices). The coins will soon be available for trading on Bitfinex.

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