- Tether’s XAUT token is now backed by 77 tons of gold.
- The gold reserves are held in a Swiss vault, securing $770 million worth of XAUT.
What happened: Tether Gold (XAUT) now backed by 77 tons of gold
Tether has announced that its XAUT (Tether Gold) is now fully backed by gold reserves amounting to 77 tons, stored in a Swiss vault. The move aims to further increase the trust and transparency in Tether’s stablecoin offerings. With the current value of gold reserves amounting to approximately $770 million, this gold-backed token represents a significant milestone for Tether’s stablecoin products.
The firm’s gold-backed digital asset, XAUT, enables users to trade and hold a token that is backed by physical gold, which is increasingly seen as a stable asset in times of market volatility. This news emphasizes Tether’s commitment to offering a more reliable and robust stablecoin product to its users.
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Why it’s important
The move reflects the growing trend in the cryptocurrency market of tying digital assets to physical commodities, such as gold, to offer more security and reduce volatility. By backing XAUT with gold, Tether ensures that its users can benefit from the value of gold while enjoying the convenience and liquidity of a digital asset. This is particularly significant in an environment where digital currencies face scrutiny for being volatile and unbacked. Tether’s XAUT provides a way for users to gain exposure to gold without the need for physical storage, making it easier for users to diversify their portfolios and hedge against market fluctuations.
This initiative further strengthens Tether’s position in the competitive stablecoin market, attracting investors looking for a more stable and secure store of value. As the world continues to shift towards digital currencies, products like XAUT play an important role in bridging the gap between traditional commodities and the evolving digital financial landscape.
