Tether proclaimed the launch of a new stablecoin backed from gold, which, as the company mentioned: "grants the right to own about 31 gram of pure material gold in certain gold bullion." A stablecoin with the XAU₮ will be released on the Ethereum and TRON blockchains.
Gold, which is going to be provided with tokens, is located in a Swiss vault, the name, and location of which are not disclosed. In this case, Tether will not have administration over the store or take a commission for the storage of the gold.
The new asset holders will have a chance to exchange their tokens for gold after the verification procedure and subject to the minimum transaction size requirements. The minimum direct-purchase amount of XAU₮ will be 50 units or 50 troy ounces of gold, that is, approximately 75 thousand dollars. Smaller units of XAU₮ up to 0.000001 troy ounces will be available for purchase on exchanges.
Trending: Dubai World Trade Center To Become a Crypto Hub and Regulator
Tether's CTO Paolo Ardoino said: "Tether Gold offers the mixed advantages of tangible and digital assets, eliminating the disadvantages of gold storage in more traditional ways, associated with increased costs and restrained access."