What Is Tether Gold (XAUT)? How It Works & Where To Buy It

Tether Gold (XAUT) is a crypto asset that is backed by physical gold held in stores by TG Commodities Limited. A XAUT token represents one fine troy ounce of gold.

Tether Gold is providing investors with an innovative and novel way to earn gold by bridging physical and digital assets.

Physical gold assets held by TG Commodities Limited are legally owned by XAUT token holders.

XAUT is currently the 216th largest cryptocurrency by market cap.

 

How Tether Gold (XAUT) Works

TG Commodities Limited is the company tasked with holding physical gold bars that are backing XAUT tokens. This ensures that the process of trading Tether Gold remains transparent and users get to skip high storage costs.

Tether is a prominent company that controls the world’s largest stablecoin, USDT, and is well-known globally. The company has been around for several years and has managed to grow exponentially in that period.

The latest digital asset offered by Tether is XAUT, a cryptographic asset that represents physical gold in the following ratio: Tether Gold price = 1 troy fine ounce of Gold on a London Good delivery bar.

This is quite unusual since it uses blockchain technology and sophisticated cryptocurrency features to link XAUT to actual assets – in this case, physical gold bars housed at physical gold stores.

Essentially, the value proposition eliminates the traditional discussion over whether to invest in gold or cryptocurrency – at least to some degree. Because the initiative uses XAUT tokens, it may seem to be employing cryptocurrency, but in reality, investors are merely investing in a cryptocurrency that tracks the gold price.

Simply put, Tether Gold’s price is relevant to the price of gold on the gold market. The only difference is that users can now purchase XAUT tokens which grant them ownership of a portion of gold bars that are held as assets by TG Commodities Limited.

The XAUT tokens are redeemable for physical gold but can only be sent to you if you reside in Switzerland. Alternatively, Tether Gold will sell your physical gold allocation and send you the cash.

Users can trade Tether Gold on the market like other cryptocurrencies but there are restrictions and the XAUT price follows the price of gold on the market.

Users interested in learning more about the essential procedures, the particular gold supply, and other critical information may consult the Tether Gold whitepaper.

 

What Is Tether Gold (XAUT) Used For?

Tether Gold is used as a novel approach to holding gold assets via the use of a crypto asset. Numerous investors want to invest in the gold sector because purchasing a gold bar or possessing a few ounces of gold has traditionally been seen as a good investment. Gold is commonly referred to as a store of value.

A growing number of people are now able to use the cryptocurrency sector to invest in actual commodities such as gold via regulated organizations like Tether Gold. All on-chain transactions are recorded in accordance with the applicable market regulations, and the XAUT market price reflects the current gold market price.

 

Where To Buy Tether Gold (XAUT)

Recently, Tether Gold (XAUT) has emerged as one of the most talked-about digital currencies. By acquiring XAUT tokens, individuals may own actual gold assets. This is a novel idea that is piquing the interest of many people.

Tether Gold (XAUT) is available for purchase on a variety of decentralized and centralized cryptocurrency exchanges. However, you must first deposit currency into an exchange before you can buy XAUT tokens on a controlled exchange. Your XAUT digital wallet on the exchange will then be credited with XAUT tokens.

You can purchase, trade, and store tokens at the crypto exchanges listed below:

1. Binance
2. Coinbase
3. KuCoin
4. Gate.io
5. Crypto.com

Before purchasing any tokens on a centralized exchange, users must be aware of the risks. When a user stores tokens on an exchange, it effectively implies that their private keys are no longer theirs since their tokens might be lost if the exchange is hacked.

The majority of people choose to keep their tokens in a digital or hardware wallet. There are many XAUT token wallets available on the market; the most popular and reliable digital wallet is MetaMask.

 

FAQs About Tether Gold (XAUT)

How long has Tether Gold (XAUT) existed?

Tether (USDT), which was initially referred to as “Realcoin,” was established in July 2014. It falls under the category of a stablecoin because its primary objective is to maintain a constant exchange ratio of 1:1 with the U.S. dollar.

iFinex Inc., headquartered in Hong Kong, owns both Tether Limited and the cryptocurrency exchange Bitfinex. iFinex Inc. also owns Tether Limited.

Tether Gold is a cryptocurrency that was established in 2020 and is backed by gold. TG Commodities Limited is the provider of the digital asset known as XAUT. One troy fine ounce of gold contained inside a London Good Delivery gold bar is equivalent to one XAUT token.

What’s controversial about Tether Gold (XAUT)?

In the world of cryptocurrencies, tokenized gold assets are well-known for sparking heated debate. There is a widespread belief among skeptics that tokenized representations of tangible assets would fail, causing thousands of people to run the risk of losing their money.

When researching projects, individuals should constantly take into consideration both factual and logical information. Before investing cash into any cryptocurrency project, you should do as much research as you possibly can.

Let’s take a look at the biggest controversy surrounding Tether Gold (XAUT).

• The possibility of an exploit – When a person holds a tangible asset that can be held in a vault or at home, it is seen as more trustworthy since the asset is in their possession.
• When an investor buys a tokenized gold asset, individuals get the crypto asset but not the real physical item. This creates a highly unsafe scenario since users may lose their tokens if an exploit or significant incident affected the exchange where they had been storing their XAUT tokens.

How many Tether Gold (XAUT) tokens are there?

At the time of writing, Tether Gold (XAUT) has a circulating supply of 246,524.00 XAUT.

The total supply of Tether Gold (XAUT) is 246,524.00 XAUT.

Can Tether Gold (XAUT) be mined?

Tether Gold (PAXG) can’t be mined. XAUT tokens can only be issued once a user has purchased directly through Tether Gold or a relevant exchange.

What is the market cap of Tether Gold (XAUT)?

The market cap of Tether Gold (XAUT) is the total amount of coins in circulation multiplied by the current XAUT price.

Tether Gold (XAUT) Market Cap = 246,524.00 XAUT x $1,715 = $422 million (216th largest market cap).

The market cap fluctuates according to circulating supply and market price.

 

Biggest Competitors Of Tether Gold (XAUT)

The tokenized gold sector is expanding at incredible speeds, and many projects are beginning to offer their coins on markets. Investing in gold is a practice that dates back hundreds of years, however, this is a new and potentially profitable method to invest in gold using cryptocurrency.

Tether Gold is now the tokenized gold asset with the second-largest market value out of all the crypto assets that are in the tokenized gold sector. Its market cap is more than $400 million.

The biggest competitors of Tether Gold (XAUT) are:

• PAXG
• PMGT

 

What Are The Future Plans For Tether Gold (XAUT)?

Tether Gold will keep expanding its business and its portfolio of assets, as well as its sphere of influence in every region of the globe. The firm has rapidly expanded to become a well-known brand in the cryptocurrency industry, and thousands of people place their faith in the organization.

The excellent range of crypto assets offered by the organization, in conjunction with the fact that it is regulated, makes it a reliable choice for a great number of people.

 

Pros And Cons Of Tether Gold (XAUT)

Pros

• 100% backed – XAUT tokens have a verifiable backing in the form of gold assets that are owned by the firm TG Commodities Limited. Tokens backed by their allotted gold that is stored in vaults are used to back XAUT traded on exchanges, which creates a new and exciting market in which anyone may safely invest in gold through cryptocurrencies.
• Novel way to invest in gold – Users now have access to a very cutting-edge method for investing in tangible assets like gold as a result of Tether Gold. By acquiring XAUT tokens, users now have the opportunity to own a portion of actual gold. One troy ounce of gold is equal to one XAUT token in terms of its value.

Cons

• Digital assets, not actual gold – Users who purchase XAUT tokens are essentially investing in tokenized assets backed by gold. In its most basic form, XAUT is a cryptocurrency that is backed by gold and whose value is tied to gold prices. However, users can exchange their tokens for actual gold at any time (if they live in Switzerland).
• Redemption amount is $90,000 – Users wanting to sell Tether Gold (XAUT) tokens for physical gold need to ensure they purchased a minimum of 50 XAUT (around $90,000) because this is the minimum redemption amount. This is an exorbitant amount that restricts the average person from investing.