Stablecoin issuer, Tether announced the launch of Tether Gold a digital asset offered by TG Commodities Limited. The new stablecoins, dubbed with the XAU₮ ticker, will be issued on ethereum and tron blockchains as ERC-20 and TRC20 tokens. Additionally, all purchases and redemptions will be in U.S. dollars. The gold backing this stablecoin Tether Gold (XAU₮) is to be held safely held in a Switzerland vault.
According to the new stablecoin whitepaper, Tether Gold [XAUt] tokens will initially be available on the ERC20 and TRC20 protocols. Additionally, All purchases and redemptions will be in U.S. dollars.
The whitepaper further stated:
“Tether Gold will purchase, or arrange for the purchase of London Good Delivery gold from a gold dealer in Switzerland, which will then be securely stored by a custodian in a vault in Switzerland. The gold will be insured by the custodian, and held for the benefit of XAUt token holders, not for Tether Gold.”
“Gas fee” will not be charged for this gold-backed token and similar to Tether’s existing products such as the ones pegged to the U.S. dollar, the euro and offshore yuan, the only fees will be on issuance and redemption.
The whitepaper also stated,
“..to buy XAUt directly from Tether Gold verified users will be required to purchase a minimum of 50 fine troy oz of gold (i.e. 50 XAUt tokens) and pay the cost to purchase the gold in the Swiss gold market plus a 25 bp fee.”