One token can represent a dollar. Another can represent an ounce of gold. The word “backed” tells you surprisingly little on its own.
Tether ($USDT ) targets the U.S. dollar. For PAX Gold ($PAXG ) and Tether Gold ($XAUT ), each issuer describes one token as representing one fine troy ounce of gold. Its dollar value can move with gold even if the vault contains exactly the metal promised.
My insurance habit kicks in here: I look for the named custodian, evidence of the backing, and what a small holder can actually redeem.
I may earn Binance Square rewards from engagement or qualifying trades linked to this post.
#TokenizedGold #Stablecoins #RiskManagement
Tether ($USDT ) targets the U.S. dollar. For PAX Gold ($PAXG ) and Tether Gold ($XAUT ), each issuer describes one token as representing one fine troy ounce of gold. Its dollar value can move with gold even if the vault contains exactly the metal promised.
My insurance habit kicks in here: I look for the named custodian, evidence of the backing, and what a small holder can actually redeem.
I may earn Binance Square rewards from engagement or qualifying trades linked to this post.
#TokenizedGold #Stablecoins #RiskManagement