Tether, the issuer of USDT, has announced a new type of cryptocurrency that is a token that is backed and pegged to gold.

At the time of writing, the new token will be released on the Ethereum and Tron networks.

Tether launches XAUt:

According to announce Recently released, Tether, the company behind the most widely used coins in the cryptocurrency market.

The token represents “XAUt” “One troy ounce of gold”.

Rights holders will be able to obtain undivided ownership rights to gold on the specified gold bars.

The gold that has been allocated will be identified with a unique serial number and specific weight and purity.

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According to the announcement, XAUt holders will be allowed to check the details of the gold bars associated with their address through a website at any time.

Furthermore, the XAUt token will be available as an ERC-20 token on the Ethereum network, and as a TRC20 token on the Tron blockchain.

Tether Gold, the digital asset tied to physical gold, is officially launched!

Find the full details about the only product among the competitors that does not offer any custody fees and directly controls the storage of physical gold. pic.twitter.com/arTgN5n0fs

– tethergold (tethergold) January 23, 2020

high barriers:

While the idea of ​​owning gold-backed tokens may sound attractive, the entry barrier to XAUt seems a bit high.

In order to purchase the gold-backed currency from Tether, users will have to have an account verified by TG Commodities Limited.

There is a minimum purchase amount equivalent to 50 XAUt which is basically 50 troy ounces.

According to the latest prices, the price is estimated at around $75,000.

Moreover, users will only be able to purchase it in US dollars.

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There is no sponsorship fee, but XAUt owners will incur a one-time 25 basis point fee when purchasing tokens from the company.

Additionally, if the user wants to redeem their token for physical gold, they must have at least one full bar of gold value tokens in order to request the redemption.

If there are not enough tokens then the company states that they “usually” require a deposit of at least 430 tokens to ensure that the gold bar is fully matched.

In terms of trading, the announcement states that XAUt tokens will be tradable on exchanges, and can be divided into any portion the platform allows.

According to the same source, XAUt tokens will be available on Bitfinex and other cryptocurrency exchanges.

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