Tether Says Its Newest Stablecoin Is Backed by Gold in Swiss Vault

Tether is issuing a new stablecoin as ERC-20 and TRC20 tokens, backing their price with one ounce of gold.

AccessTimeIconJan 23, 2020 at 4:25 p.m. UTC
Updated Sep 13, 2021 at 12:11 p.m. UTC

Stablecoin issuer Tether is launching a new token backed by physical gold.

Tether Gold "represents ownership of one troy fine ounce of physical gold on a specific gold bar," a press release said Thursday. The new stablecoins, with the XAU₮ ticker, will be issued on ethereum and tron as ERC-20 and TRC20 tokens.

"Tether Gold is launching in response to the growing demand for a digital asset that provides exposure to the world's most enduring asset and a geopolitical need for an alternative financial system," a spokesperson said in an email.

The gold backing each token will be stored in a Swiss vault, the release claimed, without naming the facility. Tether will charge no custody fees and "has direct control over the physical gold storage."

"Tether Gold provides the combined benefits of both physical and digital assets, removing the drawbacks of holding gold in more traditional ways, such as high storage costs and restricted access," said Tether CTO Paolo Ardoino.

Tether's other stablecoins are pegged to the U.S. dollar, the euro and offshore yuan.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.