The capitalization of the Tether Gold stablecoin (XAUT) tied to gold exceeded $ 21 million. This makes it the largest precious metal asset of all that is represented on the crypto market today.
In particular, the company notes in a press release that it managed to outperform its closest competitor PAX Gold (PAXG) – it has a capitalization of $ 18 million.
“Tether Gold really started off,” said Tether Technical Director Paolo Ardoino. “But I think that this is nothing compared to the potential of the new asset, especially from the standpoint of increased investor interest in diversifying risks and capital security amid political instability.”
Ardoino expressed the hope that the capitalization of Tether Gold will reach “at least 100 million US dollars.”
The launch of Tether Gold took place in January 2020. Stablecoin “grants the right to own one troy ounce of pure material gold in a particular gold bullion.” According to the issuer, the gold used to secure the XAUT is in Swiss storage.
Tether also offers the possibility of redeeming stablecoin with real gold from 50 troy ounces, which at the current rate is about $ 81,000.
XAUT’s current capitalization of $ 21 million, however, represents only a small fraction of the value of Tether USDT’s main product. Its capitalization is $ 4.65 billion.