Tether announced its latest crypto asset, Tether Gold (XAUt), is finally out in the market. As the name suggests, Tether boasts that the new tokens are backed with physical gold locked in a Swiss vault.
According to a news release published Thursday, each Tether Gold token represents one troy fine ounce of London Good Delivery gold. Notably, the tokens would be first available on Tron and Ethereum Blockchain as TRC20 and ERC-20 tokens.
Meanwhile, in an email sent to media representatives, a spokesperson from Tether said that the launch of the gold-backed stablecoins was inspired by the ever-growing demand for a more sophisticated financial system. The spokesperson also emphasized that choosing gold as the backer of the new tokens need no further explanation as it is the most enduring asset in the world.
Notably, the gold bars are being protected by a custodian company on behalf of investors. However, Tether noted that it would have direct control over the assets stored in the vault. But aside from confirming that there would be zero custody fees, the firm refused to disclose the name of the Swiss facility.
Paolo Ardoino, the CTO of Tether, said that the company’s latest stablecoin removes the persistent issues associated with the traditional ways of owning gold. Furthermore, he noted that it would bring forth the combined benefits of digital and physical assets.
While the project’s whitepaper flaunts that Tether Gold would deliver transactional utility to gold and that it would serve as a “safe haven” asset for investors, it remains to be seen as to whether it would be adopted by people due to trust issues.