The company, known for its USDT and other stable assets, launched XAUT in 2020 to give users a digital option tied to real-world gold
Ether announced that it holds $770 million worth of physical gold to back its Tether Gold (XAUT) stablecoin.
The company, best known for its USDT stablecoin, launched XAUT in 2020 to give users a digital option tied to real-world gold, aiming to blend the traditional security of gold with the convenience and speed of blockchain technology. Each XAUT token is meant to represent direct ownership of one ounce of gold, secured in Swiss vaults.
While Tether has previously confirmed that the gold is fully reserved, it has not disclosed the exact vault locations for security reasons.
“Tether Gold continues to demonstrate the strength and resilience of gold as a store of value, especially in times of great economic uncertainty. At Tether, we are proud to offer our users the ability to access the security of physical gold in a digital form with XAUT- a token that is easily transferable, easily storable, and backed 1:1 by fully held gold reserves,” said Paolo Ardoino, CEO of Tether.
The company says that third-party custodians conduct regular audits to vouch for the fact that the gold reserves match the number of XAUT tokens in circulation.
The move comes as the industry faces pressure to be more transparent about stablecoin reserves.
Earlier this week, Tether announced the appointment of a new chief financial officer and a plan to complete a full audit of its operations.
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