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January 27, 2020

Tether Launches Gold-Backed Cryptocurrency on Ethereum and Tron Networks

By Daily Hodl Staff

Tether Ltd., the company that issues USDT, the world’s largest stablecoin with a market cap of over $4.6 billion, is announcing the launch of a new product, Tether Gold (XAU?), which aims to offer the “security of a digital asset pegged to physical gold” (XAU).

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Tether’s management explains in a blog post,

“Building on a track record for product innovation, each XAU? token represents ownership of one troy fine ounce of physical gold on a specific gold bar.” 

The company adds that XAU? is issued as an ERC-20 compliant token on the Ethereum network and as a TRC-20 token on the TRON blockchain. The digital asset may be sent to any supported on-chain address from the buyers’ Tether wallet address. 

Tether Gold (XAU?) is reportedly the only product in the digital asset market that does not charge custody fees while maintaining “direct control over the physical gold storage,” which is securely kept in a vault in Switzerland. 

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Tether claims the vault uses “best in class security and anti-threat measures” and that XAU? is supported by 24-hour customer support services.

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Featured Image: Shutterstock/Oleksiy Mark