Digital Assets: Tether Gold is a New Gold-backed Crypto-Asset
Each XAU₮ token represents ownership of one troy fine ounce of physical gold on a specific gold bar.
Tether announced the launch of the TetherGold (XAU₮), a digital token having collateral of physical gold (XAU). These tokens can be held in a Tether wallet and reside as an ERC-20 token on the Ethereum blockchain and as a TRC20 token on the TRON blockchain, according to the firm’s announcement.
One token represents ownership of one troy fine ounce of physical gold, currently worth approximately $1,581.
Special features of Tether’s XAU₮
Further, the new gold-backed tokens have several advantages.
- Readily transferable from the wallet to any other on-chain address
- Zero custody fees
- Gold collateral held in a Swiss vault by TG Commodities
- Best in class security and anti threat measures – the best way to hold gold
- Moreover, there is round the clock customer support for the product.
About Tether and TG
According to Crowdfundinsider, TG Commodities is a UK-based precious metals firm. Parduman K Gupta, whose family is a prominent UK landowner, is partly responsible for the management of TG.
However, Tether is the company behind USDT, the world’s largest stablecoin by market cap. It reportedly has a market cap of over $4.6 billion.
It is fighting class-action lawsuits that allege iFinex (the parent company of Bitfinex) manipulated the cryptocurrency market in 2017 by issuing unbacked Tether (USDT) that was then sold for Bitcoin to increase its price.
Gold on the upswing
Meanwhile, gold prices are swinging higher amidst the global panic surrounding the coronavirus outbreak. Prices of futures of the precious metal hit a three-week high in early US futures trading on Monday.
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