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 worth of 1 ounce of bodily gold.
In keeping with the brand new press launch 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 show the power and resilience of gold as a retailer of worth, particularly in instances of financial uncertainty.
With XAUT, we’re providing customers the power to entry the safety of bodily gold in a digital kind—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 most effective of conventional property with the effectivity of blockchain know-how.”
The disclosure comes amid ongoing scrutiny over stablecoin reserve transparency all through the cryptocurrency trade.
The corporate added that third-party custodians recurrently 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 areas, citing safety issues.
Final month, Tether employed a brand new chief monetary officer (CFO) and dedicated to finishing a full audit.
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