On Thursday (January 23), Tether launched a new product called Tether Gold (XAUt), which is a crypto token — available as an ERC-20 token on the Ethereum blockchain and as a TRC20 token on the TRON blockchain — representing “ownership of one troy fine ounce of physical gold on a specific gold bar” held in a Swiss vault.
Paolo Ardoino, CTO at Tether, had this to say, “There is growing demand for digital exposure to physical gold, making the launch of Tether Gold a timely innovation in the crypto ecosystem. Tether Gold provides the combined benefits of both physical and digital assets, removing the drawbacks of holding gold in more traditional ways, such as high storage costs and restricted access.”
The XAUt token “can be transferred to any on-chain address from the purchasers’ Tether wallet where it is issued after purchase.” A particular gold bar(s) “will be associated with each on-chain address where Tether Gold is held.”
The allocated gold is “identifiable with a unique serial number, purity and weight” and XAUt token holders are able to verify “the details of the gold bars associated with their address” via the Tether Gold product page on the Tether website.
Tether Gold is a crypto asset issued/sold by TG Commodities Limited (a UK company incorporated in December 1998). Each XAUt token represents “one troy fine ounce of gold on a London Good Delivery gold bar” and may be “fractionalized up to six decimal places (i.e. in increments as small as 0.000001 troy fine ounce).”