#Tether , the company behind stablecoin
#USDT , has purchased 7.7 tons
#emas to strengthen the reserves backing its digital gold token,
#XAUT .
This move demonstrates Tether's commitment to enhancing transparency and trust in Crypto assets backed by gold.
Details of Gold Purchase by Tether
- Amount of Gold: 7.7 tons (equivalent to ~247,000 troy ounces).
- Purpose: To strengthen reserves for XAUT (Tether Gold), a token where each unit represents ownership of 1 troy ounce of physical gold.
- Storage Location: Gold is stored in Switzerland, with regular audits to ensure transparency.
What is XAUT?
- XAUT is a token backed 1:1 with physical gold.
- Each token represents 1 troy ounce of gold (31.1 grams).
- Can be traded 24/7 on various Crypto platforms, providing high liquidity compared to traditional gold investments.
Why is This Important?
1. Stability & Trust: By increasing gold reserves, Tether strengthens investor confidence that XAUT is truly backed by real assets.
2. Investment Alternative: XAUT allows investors to gain exposure to gold without the need to store it physically.
3. Hedge Against Inflation: Gold is often considered a safe-haven asset, and XAUT provides easy access to the global gold market.
Tether's Developments in Commodity-Backed Assets
In addition to USDT (USD-backed stablecoin), Tether is also developing commodity-based products such as:
- XAUT (backed by gold).
-
#CNHT (backed by Chinese yuan).
This gold purchase reaffirms Tether's strategy to expand the range of Crypto assets secured by real assets.