Stablecoin issuer Tether is launching a new token backed by physical gold.
Tether Gold ârepresents ownership of one troy fine ounce of physical gold on a specific gold bar,â a press release said Thursday. The new stablecoins, with the XAUâ® ticker, will be issued on ethereum and tron as ERC-20 and TRC20 tokens.
âTether Gold is launching in response to the growing demand for a digital asset that provides exposure to the worldâs most enduring asset and a geopolitical need for an alternative financial system,â a spokesperson said in an email.
The gold backing each token will be stored in a Swiss vault, the release claimed, without naming the facility. Tether will charge no custody fees and âhas direct control over the physical gold storage.â
âTether 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,â said Tether CTO Paolo Ardoino.
Tetherâs other stablecoins are pegged to the U.S. dollar, the euro and offshore yuan.
