Tether Gold (XAUT) is a special stablecoin product of the Tether company. It is pegged to gold and is backed by physical gold held in Tether’s vault in Switzerland. The creation of a gold-pegged stablecoin is said to make gold more easily divided, stored, and transported, and thus more accessible to every individual and institution.
XAUT was created in 2020 and is only available on Ethereum at the moment.
How Tether Gold (XAUT) Works
XAUT’s price is backed by gold held in a Swiss Vault under the control of Tether. Every whole token of XAUT is equivalent to one troy fine ounce of London Good Delivery gold bar, and a token can be fractionalized up to six decimal places, which is as small as 0.000001 troy fine ounce.
One special thing about XAUT is that ownership of the XAUT token also represents the ownership of the physical gold bar held in the vault. Tether will build a tool where people can look up and know for certain which gold bar is associated with which XAUT-holding wallet.
Another feature that makes XAUT a pioneering stablecoin is that Tether does not charge custody or gas fee for XAUT users, and it allows for XAUT to be redeemable for physical gold. The redeemed gold can be delivered to the user’s designated address in Switzerland or sold into USD by Tether on behalf of the users.
How Many Tether Gold (XAUT) Tokens Are in Circulation?
As a stablecoin, XAUT does not have a total supply. Its circulating supply is 246,524. It may not seem much as in the number of tokens, but the market cap of XAUT calculated from this circulating supply is $455 million.
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