Tether, the corporate behind a number of main cryptocurrency stablecoins, together with USDT, introduced Wednesday that it holds $770 million in bodily gold bullion reserves backing its Tether Gold (XAUT) stablecoin.
Launched in 2020, XAUT is a digital asset pegged to the value of 1 ounce of bodily gold.
Based on the brand new press release from Tether, every token represents direct possession of gold bars held in secured Swiss vaults.
Says Paolo Ardoino, CEO of Tether,
“Tether Gold continues to exhibit the energy and resilience of gold as a retailer of worth, particularly in occasions of financial uncertainty.
With XAUT, we’re providing customers the power to entry the safety of bodily gold in a digital kind—safe, simply transferable, and backed 1:1 by absolutely held gold reserves. It’s a part of our broader dedication to constructing monetary instruments that mix the most effective of conventional belongings with the effectivity of blockchain expertise.”
The disclosure comes amid ongoing scrutiny over stablecoin reserve transparency all through the cryptocurrency business.
The corporate added that third-party custodians often audit its gold reserves to make sure they match the variety of XAUT tokens in circulation.
Tether has not disclosed particular particulars about its vault places, citing safety issues.
Final month, Tether hired a brand new chief monetary officer (CFO) and dedicated to finishing a full audit.
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