Tether, the corporate behind a number of main cryptocurrency stablecoins, together with USDT, introduced Wednesday that it holds $770 million in bodily gold bullion reserves backing its Tether Gold (XAUT) stablecoin.
Launched in 2020, XAUT is a digital asset pegged to the value of 1 ounce of bodily gold.
Based on the brand new press release from Tether, every token represents direct possession of gold bars held in secured Swiss vaults.
Says Paolo Ardoino, CEO of Tether,
“Tether Gold continues to display the power and resilience of gold as a retailer of worth, particularly in instances of financial uncertainty.
With XAUT, we’re providing customers the flexibility to entry the safety of bodily gold in a digital type—safe, simply transferable, and backed 1:1 by totally held gold reserves. It’s a part of our broader dedication to constructing monetary instruments that mix the perfect of conventional property with the effectivity of blockchain expertise.”
The disclosure comes amid ongoing scrutiny over stablecoin reserve transparency all through the cryptocurrency trade.
The corporate added that third-party custodians often audit its gold reserves to make sure they match the variety of XAUT tokens in circulation.
Tether has not disclosed particular particulars about its vault places, citing safety considerations.
Final month, Tether hired a brand new chief monetary officer (CFO) and dedicated to finishing a full audit.
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