Tether Gold

Tether Gold (XAUt) is a digital asset offered by Tether, representing ownership of one troy ounce of physical gold on a specific gold bar. XAUt tokens are issued by TG Commodities Limited. Each token is directly linked to a particular bar of gold with a unique serial number, which is stored in secure vaults. The ownership of XAUt tokens is recorded on the blockchain, ensuring transparency and security for token holders. This setup aims to combine the timeless value of gold with the efficiency and security of modern blockchain technology, offering a stable and tangible asset in the digital currency space.

The tokenomics of Tether Gold (XAUt) are straightforward, reflecting the direct correlation between the number of tokens and the physical gold reserves they represent. Each XAUt token is equivalent to one troy ounce of physical gold. The supply of XAUt tokens in circulation directly corresponds to the amount of gold held in reserves, ensuring that each token is fully backed by physical gold. The token operates on the Ethereum and TRON blockchains, leveraging the security and flexibility of these platforms for transactions and ownership verification.

As of today 19 April 2025, the price of Tether Gold is ₹2,89,526.40 INR, with a 24-hour trading volume of #{dailyVolume} USD. The market capitalization for Tether Gold is NaNUSD. The circulating supply is NaN Tether Gold, with the total supply also being NaN Tether Gold.

Pros:

• Tangible Asset Backing

• : Each XAUt token is backed by one troy ounce of physical gold, providing a tangible asset base many cryptocurrencies lack.

• Transparency

• : Using blockchain technology ensures transparency in ownership and transactions, with each token linked to a specific gold bar.

• Stability

• : Gold has historically been a stable store of value, which can provide a hedge against the volatility often seen in the cryptocurrency market.

• Accessibility

• : Tether Gold democratizes access to gold investment, allowing for fractional ownership and eliminating the need for physical storage by the investor.

• Security

• : Leveraging blockchain technology provides a secure and immutable record of ownership, reducing the risk of fraud and theft.

Cons:

• Market Volatility

• : Despite being backed by gold, XAUt's price can still be subject to market volatility and speculation.

• Storage and Insurance Costs

• : The physical gold backing XAUt tokens incurs storage and insurance costs, which could impact the token's value or lead to additional fees for token holders.

• Liquidity Concerns

• : Depending on market conditions, there may be liquidity concerns when buying or selling large amounts of XAUt tokens quickly.

• Regulatory Risks

• : As with all cryptocurrencies, there is a risk of changing regulations that could affect the use, transfer, or value of XAUt tokens.

• Limited Use Cases

• : Being a tokenized form of gold, XAUt may have limited use cases beyond being a store of value or an investment vehicle.

• Hedge Against Inflation

• : Gold has historically served as a hedge against inflation, and investing in XAUt provides similar benefits in the digital asset space.

• Portfolio Diversification

• : Adding XAUt to a cryptocurrency portfolio can provide diversification and reduce risk by including a stable, non-correlated asset.

• Ease of Access

• : Tether Gold offers an easy and accessible way to invest in gold without the logistical challenges of physical gold storage and transportation.

• Blockchain Benefits

• : Blockchain technology's security, transparency, and efficiency enhance the traditional benefits of gold investment.

• Fractional Ownership

• : XAUt allows for fractional ownership of gold, making it accessible to a broader range of investors with different capital levels.

• Direct Gold Ownership

• : XAUt provides direct ownership of physical gold, with each token linked to a specific gold bar, a feature not commonly found in other cryptocurrencies.

• Blockchain Transparency and Security

• : The integration of blockchain technology ensures a transparent, secure, and immutable record of ownership.

• Accessibility and Fractionalization

• : Tether Gold democratizes gold investment, allowing for easy access and fractional ownership, which lowers the entry barrier for investors.

Tether Gold addresses the problem of accessibility and liquidity in gold investment. Traditional gold investment involves logistical challenges, including storage, transportation, and high entry costs. XAUt simplifies the process by tokenizing gold, allowing for easy transfer and fractional ownership and eliminating the need for physical handling while maintaining a direct link to physical gold assets.

The Tether Gold (XAUt) token is issued by TG Commodities Limited, a subsidiary of Tether Holdings Limited. Tether was originally founded by Reeve Collins, Craig Sellars, and Brock Pierce in 2014. The executive team of Tether, which is likely involved in the oversight and management of Tether Gold, includes JL Van Der Velde as the CEO, Giancarlo Devasini as the CFO, and Paolo Ardoino as the CTO.

The initial coin offering (ICO) details of the Tether Gold (XAUt) Token are unknown.

• Gold Price Volatility

• : While gold is a stable asset, its price can still fluctuate due to economic factors affecting XAUt's value.

• Regulatory Uncertainty

• : The evolving regulatory landscape for cryptocurrencies and tokenized assets risks XAUt's operation and acceptance.

• Storage and Insurance Costs

• : The costs associated with storing and insuring the physical gold backing XAUt could impact its overall value proposition.

• Market Liquidity

• : There may be challenges in quickly buying or selling large quantities of XAUt, affecting its liquidity.

• Operational Risks

• : Risks related to the storage, security, and management of the physical gold reserves could impact the integrity and value of XAUt tokens.

The Tether Gold (XAUt) token represents a significant innovation in digital assets, combining the stability and historical value of gold with the efficiency and transparency of blockchain technology. Launched in January 2020 as an ERC-20 token on the Ethereum blockchain, each XAUt token is pegged to one troy fine ounce of physical gold, adhering to the London Good Delivery (LGD) standard. This ensures that each token is backed by physical gold bars, securely stored in vaults, and held by Tether on behalf of the customer. Obtaining XAUt tokens involves Tether procuring physical gold, represented by the issued digital tokens. These tokens can be acquired directly through Tether or secondary markets, providing flexibility and accessibility to investors.

The operational framework of Tether Gold emphasizes transparency and security. Each on-chain address holding XAUt tokens is associated with specific gold bars, and Tether Gold plans to offer a "Look-up Website" for users to identify the gold bars linked to their tokens. This feature ensures that the physical gold backing the tokens is verifiable, enhancing trust in the digital asset. Moreover, reallocating physical gold with on-chain transactions ensures that each token consistently represents ownership of a specific gold bar. To engage in transactions with XAUt, users must undergo an identity verification process and comply with terms of service, including meeting purchase or redemption minimums.

The whitepaper insights highlight several use cases and advantages of Tether Gold. As a stablecoin pegged to gold, XAUt offers a digital representation of physical gold that reduces the expenses and logistical challenges of holding the precious metal. It facilitates the transfer of ownership and value across different locations worldwide, making gold investment more accessible and democratizing it for a broader range of investors. By combining the economic properties of gold with the technological benefits of blockchain, such as transparency and security, XAUt serves as a sovereign-neutral monetary unit. This unique blend of features positions Tether Gold as a potential money-like asset with widespread acceptance, merging gold's scarcity and price stability with the non-partisan nature and resistance to censorship of digital currencies.