Tether launches new stablecoin backed by physical gold
Fri, 24 Jan 2020, 10:22 am UTC
Tether, the company behind 'USDT' stablecoin, has announced in a press release the launch of a new product called “Tether Gold” (XAU₮), that offers the security of a digital asset pegged to physical gold (XAU).
According to the details, each token of Tether Gold represents ownership of one troy fine ounce of physical gold on a London Good Delivery bar. It can be transferred to any on-chain address from the Tether wallet where it is issued after the purchase.
“XAU₮, which is available as an ERC-20 token on the Ethereum blockchain and as a TRC20 token on the TRON blockchain, can be transferred to any on-chain address from the purchasers’ Tether wallet,” the press release read.
Issued by TG Commodities Limited, XAU₮ offers zero custody fees and has direct control over the physical gold storage with the vault located somewhere in Switzerland.
"Tether Gold provides the combined benefits of both physical and digital assets, removing the drawbacks of holding gold in more traditional ways, such as high storage costs and restricted access," said Tether CTO Paolo Ardoino (as quoted by CoinDesk).
Meanwhile, Turkey’s Istanbul Clearing, Settlement and Custody Bank (Takasbank) has announced the launch of its blockchain-based transfer platform for digital gold called BiGA Digital Gold.
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