Tether will launch new gold-backed-cryptocurrency Tether Gold
Each digital asset will represent an ounce of the precious metal associated with a bar that will remain in a vault in Switzerland
The crypto universe company Tether announced the creation of a new token that will be backed by gold reserves. According to a statement from the platform, the new stablecoin Tether Gold will represent an ounce of gold associated with a specific bar of the precious metal that will remain in a vault in Switzerland.
Tether‘s press release indicates the value of each digital asset backed by physical reserves. This is an initiative similar to that of Paxos, which at the end of September last year announced the launch of Pax Golden (PAXG), whose tokens can be exchanged for gold in authorized entities in New York.
According to statements by Paolo Ardoino, CEO of Tether, “the new tokens that will operate under the XAU ticket will be issued on the Ethereum and TRON blockchain under the ERC-20 and TRC-20 standards.”
The launch of the new stablecoin looks to meet the increase in the demand for a cryptocurrency that offers customers a more attractive and secure support, in addition to becoming an alternative financial system.
In this regard, Ardoino stressed: “Tether Gold will provide users with the benefits of physical and digital assets, leaving aside the inconvenience of having gold through more traditional mechanisms, avoiding high storage costs and restricted access to the precious metal.”
Tether spokespersons indicated that users of the new cryptocurrency will be able to carry out operations with total freedom, without the requirement of paying any commission for the storage of physical gold in the vault.