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.
In accordance 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 occasions of financial uncertainty.
With XAUT, we’re providing customers the power 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 most effective of conventional belongings 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 repeatedly 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 considerations.
Final month, Tether employed a brand new chief monetary officer (CFO) and dedicated to finishing a full audit.
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