About Tether Gold (XAUT)
Tether Gold (XAUT) is a gold-backed digital asset pegged to the value of one troy ounce of gold. It was launched by Tether, the company behind the USDT stablecoin, in January 2020. The purpose of XAUT is to provide a stable and secure way for individuals and institutions to invest in gold without possessing it physically.
XAUT token holders can reportedly benefit from the perks of physical gold ownership without physical constraints, such as high storage costs and restricted accessibility.Ā
XAUT tokens can be transferred from a holder's Tether wallet to any on-chain address. A specific gold bar will be associated with each on-chain address that holds Tether Gold. Each Tether Gold token represents ownership of one ounce of physical gold.
In addition to giving holders ownership of physical gold, XAUT token holders can also take advantage of the ownership of blockchain-tokenized assets. XAUT is an ERC-20 token issued on the Ethereum blockchain and a TRC-20 token issued on the TRON blockchain, allowing gold to be traded or transferred globally in the form of tokens.Ā
Since the Ethereum Merge, ERC-20 Tether Gold tokens are validated using Proof-of-Stake (PoS) consensus.
An added feature to owning a gold-backed digital asset is severability. XAUT can be fractionalized down to 0.000001 ounces, allowing investors to easily purchase it with small funds, lowering the investment threshold, and increasing the liquidity of physical gold.Ā
XAUT makes gold portable, allowing users worldwide to convert their assets into digital tokens and take them anywhere. Gold is a relatively stable asset so XAUT can serve as collateral in the crypto space.
Each $XAUT token represents one troy ounce of gold on a London Good Delivery gold bar. The current price of XAUT is live-tracked on Binance.