Back in January 23 Tether Limited, which manages Tether (USDT), the biggest stablecoin in the world by far with a $10 billion market cap, launched Tether Gold (XAUT) to little fanfare. However, with Bitcoin (BTC) and gold now being in the spotlight, Tether Gold (XAUT) is gaining popularity since it has all the benefits of cryptocurrency technology combined with all the benefits of investing in gold.
As discussed in a previous article on Crypto.IQ, Bitcoin (BTC) is now by far the most lucrative asset in the world with a 175% gain since mid-March, with gold being the 2nd most lucrative asset with a 28% gain during the same time period. However, the frenzy surrounding gold is actually far bigger than the current crypto frenzy, since the gold market is on the order of 100X bigger than the Bitcoin (BTC) market, since gold has a market cap of roughly $10 trillion while Bitcoin (BTC) is roughly on the scale of a $100 billion market cap.
Therefore, gold is super hot right now, and investors worldwide are rushing to snap up as much gold as they can.
Tether Gold (XAUT) is a useful hybrid between crypto and gold, since it is essentially both. Each Tether Gold (XAUT) is backed by an ounce of gold held in a Swiss vault which is controlled by Tether Limited, so Tether Gold (XAUT) is directly equivalent to physical gold.
Indeed, each Tether Gold (XAUT) is worth just over $1,900 right now, and closely tracks the price of the global gold market.
Simultaneously, Tether Gold (XAUT) is a cryptocurrency, and therefore has all the benefits of crypto technology, including the ability to send it anywhere in the world instantly and securely, to hold it solely and securely via proper storage of private keys, and the ability to trade it instantly on the exchanges which list it, which includes Bitfinex and FTX at this time.
Essentially, Tether Gold (XAUT) is a highly liquid form of gold, in the sense that it can be sent anywhere instantly, and bought and sold instantly.
In fact, this solves one of the biggest problems of physical gold, which is that it is costly and insecure to store, send, or trade.
Tether Gold (XAUT) is the perfect mashup of gold’s value and the agility and security of crypto technology, and the current market where gold and crypto are the hottest assets in the world is creating the perfect conditions for a massive increase in Tether Gold’s (XAUT) popularity.