Tether remains one of the more controversial companies in the cryptocurrency space. Now that the company is venturing into tokenizing gold, that situation may not necessarily improve anytime soon.
A recent announcement on the website confirms that Tether will begin tokenizing gold on the blockchain.
The Launch of Tether Gold
This new asset will be known as XAUT, or Tether Gold.
Every asset to be produced will be pegged to physical gold reserves.
Per token owned by a user, they will have the digital representation of one troy fine ounce of physical gold in their hands.
For now, XAUT will be issued on the Ethereum and TRON blockchains.
Both the ERC-20 and TRC-20 tokens will represent the same exact value.
Another benefit to Tether Gold, according to the company, is the lack of custody fees.
All of the physical gold is stored in a vault in Switzerland.
It is not the first time the tokenization of gold has been attempted in the cryptocurrency industry.
However, Tether is convinced it is the best way to host Gold in the modern age.
For now, it remains to be seen if this new Tether Gold asset will be listed on any cryptocurrency trading platforms as well.
Assuming that will be the case, an interesting situation is created.