In recent years, as cryptocurrencies are leaping from new to mainstream technology, various possibilities arise in different fields. For example, the supply chain industry.
Blockchain, the underlying technology of cryptocurrencies, is transforming and disrupting many industries, including the supply chain. In fact, it is expected that the blockchain supply market will reach the amazing $9,852.91 million by 2025.
But it’s not just about industries. We are also witnessing the rise of different types of cryptocurrencies and altcoins. Let’s take stablecoins as an example. Developed to minimize the price volatility, stablecoins can be pegged to cryptocurrencies, fiat money, precious metals, etc.
And one of the most popular (and most scrutinized) stablecoins on the market is Tether.
Tether – controversy and rumors
Tether is a stablecoin backed by the dollar, and it was originally designed to always be worth $1.00, maintaining $1.00 in reserves for each tether issued. However, ever since its launch, Tether has been facing some serious accusations and controversy.
For example, in 2019, the New York Attorney General accused Bitfinex exchange of using Tether’s funds to cover up $850 million of loss. After the accusations, the company failed to provide an audit with an explanation for different controversial claims and rumors.
And one of the rumors is that Tether doesn’t have the money it claims it does, to maintain the worth of $1.00 for each tether issued.
Recently, Tether announced the launch of its new product, which finally leads us to the topic of our today’s blog post.
Tether Gold (XAU₮) – where stablecoin meets the gold
According to the announcement on its website, Tether Gold provides the security of a digital asset pegged to physical gold (XAU). XAU₮ is built on top of the Ethereum and TRON blockchain, and it’s available as an ERC-20 and TRC20 token.
Tether Gold offers to its customers zero custody fees, and physical gold storage based in Switzerland vault, with a high level of protection.
Tether Gold isn’t the only one
The list of gold-backed stablecoins is getting longer and longer. Companies decide to peg gold for good reasons. First, gold is the probably most enduring asset in the world, lasting for centuries.
Second, this type of stablecoins is much less likely to be inflated than fiat-backed stablecoins.
So, let’s take a look at some companies that developed gold-backed stablecoins:
- Novem Gold
- More Gold Coin
- Digix Gold
- AnthemGold
- Vaultoro
- Ozcoin
- AurusGold, etc.
Wrap-up
Although Tether has been facing numerous controversies, the company continues to operate and launch new products, such as Tether Gold.
In its press release, Tether invited the crypto exchanges to support gold-backed stablecoin and include it in their offer.
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