What is Tether Gold? What Does XAUT Do?

What is Tether Gold? Tether Gold (XAUT) is a commodity-backed stablecoin asset whose value follows the price of an ounce of gold in a 1:1 ratio.

What is Tether Gold? What Does XAUT Do?
What is Tether Gold? What Does XAUT Do?

What is Tether Gold? Tether Gold (XAUT) is a commodity-backed stablecoin asset whose value follows the price of an ounce of gold in a 1:1 ratio. As Coinzigzag.com we will review Tether Gold in this article. However, we also answered questions such as what is Tether Gold, what is XAUT, and how to buy it, which is a curiosity among investors. Now, let's examine together this cryptocurrency, which is indexed to the price of an ounce of gold.

What is Tether Gold?

Tether has launched a stablecoin called USDT in the past years. Currently, it serves investors as a digital asset tracking the US dollar. However, it continues to make a name for itself as the largest stablecoin in the market. The Tether company, which launched this crypto currency, also issues new digital assets over time. One of these cryptocurrencies, Tether Gold (XAUT), is a stablecoin just like USDT. But it differs from it in a number of ways.

Basically, XAUT was designed to make investing in commodities easy and accessible. The asset tracks the price of gold in ounces at a 1:1 ratio. Accordingly, each cryptocurrency always has the same value as an ounce of gold. So how does Tether's system ensure this stable price action? The answer is hidden in London Good Delivery (LGD). Tether deposits standard LGD gold bars in a dedicated bank account. Each bar equals 400 troy ounces of gold. By doing this, the company adjusts its reserve based on the stablecoin supply in the market.

What does Tether Gold offer?

XAUT holders reap the combined benefits of both physical and cryptocurrencies, according to the Tether Gold website. Stablecoin holders will be able to enjoy owning gold while avoiding the disadvantages associated with physical gold such as high storage costs and limited availability. Built on Ethereum, this cryptocurrency allows its investors to invest in gold without leaving the market. Gold is a historically safe investment vehicle. In other words, the asset attracts a lot of investors, especially in times of crisis.

What does XAUT do?

XAUT has advantages for those who want to invest in digital gold. First of all, the stablecoin is an ERC-20 token. In other words, it can be easily moved on the Ethereum network and transferred to different addresses. Protecting the asset with a physical reserve also makes it more stable. Owners of Tether Gold own the rights to certain physical bars. They can also identify details with a unique serial number. It is also possible for them to go through a verification process and use the tokens for real payments.

What is Tether Gold? How to get XAUT

Stablecoin is currently traded on many cryptocurrency exchanges, including OKX, Gate.io, Uniswap. Interested investors need access to one of these exchanges to purchase XAUT.