Tether gives more accessibility to the classic stock.
The idea of money as a financial tool in exchange for goods and services began with extremely rudimentary instruments. It is not until the arrival of gold that we began to have a more elaborate monetary system. Gold continued to form the basis of our system for centuries until relatively recently. In an increasingly digital world, it’s easy to forget why gold has been an attractive investment for most of human history. Today there is a golden opportunity to recover those advantages we lost, and reduce many of its disadvantages.
Gold on the blockchain
Tether Gold (Gold) is a digital asset offered by TG Commodities Limited that allows holders to self-custody their gold backed crypto. It is the leading asset that enables gold to be used in the digital economy. One full XAUt token represents one troy fine ounce of gold on a London Good Delivery bar. XAUt is available as an ERC-20 token on the Ethereum blockchain and as a TRC20 token on the TRON blockchain. The token can be traded or moved easily at any time, anywhere in the world, and can be transferred to any on-chain address from the purchasers’ Tether wallet where it is issued after purchase. The allocated gold is identifiable with a unique serial number, purity, and weight and is redeemable in the form of physical gold.
Technical advantages
Being an ERC20 token, it can be divided into fractions as small as 0.000001 ounces, making it possible to manage fairly low amounts of it -ideal for small investors- through exchange houses such as Bitfinex. Also, being a token, it acquires a greater scope and translatability. You would not need any type of special procedure to receive a payment in gold, only a wallet compatible with the network. In addition, the same blockchain technology allows you to know precisely which ingot each ounce belongs to. You can verify it by simply placing your Ethereum address on its page.
This allows an accurate audit of the asset status supporting the token, maintaining transparency at all times. Tether already has 142,320 ounces of gold in circulation, plus 104,203 ounces available for sale. The total value of these reserves amounts is USD 205,316,013.
XAUt is also an ideal vehicle to function as collateral for collateralized loans in DeFi and CeFi, Gold has been used this way for centuries. It is a fairly stable asset in terms of its price action, making it easier to avoid loan collateral being liquidated. This is a very valuable guarantee when we understand the volatility of the market, and considering that you can redeem your tokens for physical gold with a relatively low cost: 0.25% plus transportation costs to deliver in Switzerland, or even TG Commodities Limited can sell your gold on the market Swiss on request, and deliver the cash (by wire transfer).
Finally, XAUt is highly portable, unlike physical gold. XAUt tokens can be carried in your pocket, anywhere you need to go. People have historically held gold as a way to escape politically unstable countries, but while the gold may have empowered them to protect their savings it is almost impossible to leave a country with a meaningful amount of gold.
Imagine trying to flee a country with 10 gold bars in your luggage! It will be confiscated or stolen. XAUt empowers users around the world to easily convert their savings into gold and take it with them anywhere they go.
Gold in a new environment
Since the 17th Century, gold bearer titles have been used as a viable form of money. In earlier days, states used this system to issue their legal tender currency. Historically speaking, since the Bretton Woods Conference, the need to back money in gold has been understood. After World War II, the proposal to create the Bancor, which would be an international currency whose value would be established in relation to 30 basic commodities -one of which was gold- was rejected. In the end, it was decided to adopt the US dollar for that purpose, as long as the Federal Reserve system maintained the gold standard. This did not happen.
With the XAUt, blockchain technology is being used to provide better qualities for the commercialization of gold. This can lead to its widespread use as a means of payment given that we have a historical reserve of value backing it 1:1. From the public’s perception, it can be an entry point to the cryptocurrency market from an element that is already familiar.
Clearly, the most immediate use is as a store of value. But XAUt adds a higher level of privacy, and a considerable reduction in costs, especially the ones related to transportation. Physical gold -and gold titles in some vaults- do not have greater accessibility. Currently, the most popular way to obtain exposure to gold is by buying an ETF. However, these products are less direct than XAUt. Each token is a property title on specific gold bullion -which you have the option of holding in its physical form – something that would be impossible in an ETF.
In practice, Tether is building bridges for people to learn about Bitcoin through values that are more common to them. The most important thing is that these values are available to everyone. If we use USDt as a reference point, we see an asset that began as a product that sought to facilitate arbitrage and trading and is currently used as a means of payment whose adoption is constantly growing. XAUt has the same possibilities. Even without being a friendly account unit at all, it has a real utility and clear technical virtues, allowing the foundations of a more inclusive economic system to be put in place.
How to buy Tether Gold
Based on the advantages brought by Tether Gold on the chain of gold, users can buy a small amount of XAUt in the secondary market. For example, buying 0.05 XAUt is equivalent to buying 0.05 ounces of gold. Cryptocurrency exchanges that currently offer XAUt trading services include: Bitfinex, FTX, and gate.io, and XAUt can also be exchanged from the decentralized exchange Uniswap.
Users with large purchase needs can purchase Tether Gold (XAUt) directly through TG Commodities Limited after account verification, and the minimum purchase quantity is 50 XAUt. In addition, users can also deposit XAUt into the lending platform Celsius or FTX App (formerly Blockfolio) to obtain the annualized income of XAUt, so that investing in gold can also earn passive income.
Although XAUt is a digital asset issued on the chain, it is still linked to physical gold and must rely on its issuing company, TG Commodities Limited, to preserve physical gold. Holders should continue to track the operating status of the issuing company and the currency’s status Transaction status to protect asset safety.
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