While the seemingly unending fiscal debate about de-dollarization, global reserves, and cryptocurrency takes centre stage, the world’s most…
While the seemingly unending fiscal debate about de-dollarization, global reserves, and cryptocurrency takes centre stage, the world’s most valuable asset, gold, remains highly unexplored. In the past, gold was keenly demanded in barter transactions.
But the present conditioning, which gives no room for trade by barter, of which Gold found immense essence, has left it with little to no attention.
However, this might be ending soon, considering the recent innovations surrounding the asset, one of which is Tether Gold, launched in 2020 by TG Commodities Limited.
What is Tether Gold?
Tether Gold (XAUT) is a digital asset pegged to gold’s value. Each unit of Tether Gold is linked to the price of one troy ounce of physical gold, which is stored in a vault. It is a stablecoin that provides ownership on a 1:1 basis of one fine troy ounce of gold on a physical bar that meets the Good Delivery standard of the London Bullion Market Association (LBMA).
According to Tether Gold, this technology allows access to a stablecoin that provides ownership of physical gold while avoiding the drawbacks associated with physical gold, such as high storage costs and limited accessibility. Holders of Tether Gold get access to the benefits of holding both physical and digital assets.
“Unlike fiat paper currency, coins, or other assets, gold has maintained its value throughout the ages. People see gold as a way to pass on and preserve their wealth from one generation to the next.”
Tether Chief Technology Officer Paolo Ardoino said in an interview:
“Gold is an excellent hedge against inflation because its price tends to rise when the cost-of-living increases. In this unprecedented time in which central banks are printing more money than ever, gold is a great choice to store your wealth because of its scarcity.”
Read Also: Paolo Ardoino of Tether explains why $USDT is the safest of all stablecoins
Tether Gold is an exciting addition to the blockchain space
One very crucial advantage of holding XAUT is its constant availability. As a digital token, Tether Gold is available on markets operating 24 hours a day, seven days a week. This implies that when the traditional markets for gold shut down or close up, buying or selling Tether Gold tokens will not be far-fetched.
With this token, it is possible to redeem it for physical gold or USD fiat currency—this might seem by far the most exciting of its features.
The statement seen by TechNext explains that one of the main advantages of Tether Gold is its provision of immense exposure to gold to investors without the need for physical ownership. This means that investors do not have to worry about the storage and insurance of the metal, which can be costly and cumbersome.
Also, because it is an ERC-20 token, it can be easily moved on the Ethereum blockchain from one address to another.
Tether Gold is a digital asset that provides investors a stable and secure way to invest in gold. It offers a convenient way to invest in gold without physical ownership, making it a useful tool for investors who want to diversify their portfolios and have a safe haven against currency depreciation and inflation.
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