Tether, the company behind the popular USDT stablecoin, announced that its gold-backed stablecoin, XAUT, is backed by a hefty $770 million in physical gold bullion.
Gold Standard for Crypto?
Launched in 2020, XAUT is designed to mirror the price of one ounce of gold. Tether claims each XAUT token represents ownership of a portion of gold bars securely stored in Swiss vaults. CEO Paolo Ardoino highlighted the stability of gold, especially during economic uncertainty, and touted XAUT as a way to access this security digitally. He emphasized the ease of transfer and the 1:1 backing by gold reserves. This move is part of Tether’s broader strategy to blend traditional assets with blockchain technology.
Transparency and Audits
This announcement comes as the cryptocurrency industry faces increased scrutiny over the transparency of stablecoin reserves. To address these concerns, Tether stated that independent third-party custodians regularly audit its gold reserves to ensure they match the number of XAUT tokens in circulation. While they haven’t revealed the exact vault locations for security reasons, Tether recently appointed a new CFO and pledged to complete a full audit.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies or any other high-risk assets.
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