A Tokenized Version Of Gold

Tether Gold (XAUT) is a digital token that represents ownership of one troy ounce of physical gold held in a Swiss vault by the company Tether.

It’s a tokenized version of gold that brings some of the advantages of cryptocurrencies to the world of precious metals. Tether, the company behind XAUT, provides regular attestations of its gold reserves, typically conducted by a reputable auditing firm. This is done to ensure that there is a 1:1 backing of XAUT with physical gold.

XAUT holders have a claim on the underlying physical gold. They can redeem their XAUT for actual gold if they wish. This provides a level of security and assurance for token holders.

The token can be transferred on blockchain networks, making it easier to trade and move compared to physical gold. It’s also less cumbersome for international transactions.

As it’s backed by a stable asset (gold), XAUT is less volatile than many other cryptocurrencies, which can make it attractive to those looking for a stable store of value.

XAUT is traded on various cryptocurrency exchanges and can be used as a means of hedging against traditional market volatility or as a stablecoin.

Disclaimer. This article is for informational purposes only and should not be viewed as an endorsement by Coinidol.com. The data provided is collected by the author and is not sponsored by any company or token developer. They are not a recommendation to buy or sell cryptocurrency. Readers should do their research before investing in funds.