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Tether is now supporting a gold-backed stablecoin, Tether Gold (XAU₮), based on a Jan. 23 press launch. One token represents possession of 1 troy nice ounce of bodily gold, presently price roughly $1,550.
The brand new product is obtainable as an ERC-20 token on the Ethereum blockchain, in addition to a TRC20 token on Tron (TRX).
The funds are mentioned to be backed by bodily gold held in a “Switzerland vault,” the press launch reads. In line with Tether, its gold providing is the one product amongst its competitors that doesn’t cost custody charges.
Tether has additionally invited all exchanges wishing to assist the brand new token to contact the corporate. Blockchain info for the Ethereum contract exhibits that there’s presently an impressive provide of virtually 4,000 tokens, which might be equal to a $6.2 million market capitalization.
Bitfinex has already launched XAUT buying and selling, with one quarter of the ERC-20 provide having been moved to Bitfinex. As a closely-affiliated firm to Tether, it was anticipated for Bitfinex to be the primary to supply the brand new token.
Plans for commodity-backed Tethers have been in full swing since not less than September 2019.
Tether has typically been criticized for its opaque reserve administration, with one high-profile class motion lawsuit alleging that the corporate used this to control the market in 2017.
As well as, Bitfinex reportedly used Tether reserves to cowl a liquidity shortfall following points with its fee supplier, Crypto Capital Corp.
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