Tether Gold demand increases as gold tops USD1,900

Submitted 27/07/2020 - 9:20am

Tether Gold (XAU₮), a digital asset providing ownership of physical gold (XAU) custodied in Switzerland, has witnessed increasing demand as the price of gold surpasses USD1,900 a troy ounce amid increasing geopolitical tensions.

Gold has enjoyed its longest winning streak since 2011 as the global Covid-19 crisis shows no signs of abating, and a deepening diplomatic row between the US and China unsettles investors. The metal is now approaching its record intraday high of USD1,921 set in September 2011, having risen about a quarter this year — making it one of the best-performing assets in 2020.

 
“The creators of Tether felt individuals would also appreciate a blockchain-based token that provides exposure to gold without annual fees,” says Paolo Ardoino, CTO at Tether. “While no one could of course have anticipated the severe challenges that we’ve all had to adapt to in 2020, it is clear that in times of uncertainty people like having accessibility to gold. Tether Gold is clearly a product that resonates in these times.”
 
Gold’s ascent has come amid a backdrop of unprecedented monetary stimulus from central banks to counter the impact of the pandemic. 
 
XAU₮ combines the best of three distinct worlds: ownership of gold which is intended to provide direct exposure to the price of gold, the ease of accessibility of traditional assets such as Exchange Traded Funds (ETFs), and the transactional utility of a digital token. XAUt removes a great deal of friction and cost associated with owning gold. While the underlying physical gold will remain in the custodian’s vaults, XAUt will facilitate key economic qualities of gold – such as ownership and value – to flow seamlessly around the world.

Tags Cryptocurrency