Tether’s gold-backed stablecoin XAUT continues to rise in demand as gold hits its all time high since September 2011.
27 July, 2020 | AtoZ Markets – Tether announced XAUT in January, allowing ownership of one troy ounce of gold. All XAUT tokens are stored in Swiss safes. Investors can freely move XAUT token around on the TRON or Ethereum blockchain, and transactions can be tracked with block explorers like Etherscan. It does not charge custody fees.
Gold Demand Rises and XAUT Hits All Time High
The gold price is ruling at an unprecedented high price. Investor often finds that gold is a safe store of value in times of economic uncertainty. Demand for Tether gold-backed stablecoin (XAUT) increased significantly as the price of gold hit a record high of $1,944 per troy ounce since September 2011. At the time of pressing, one ounce of gold was worth about $1,943. US gold futures rose 1.5% to $1,925.
Paolo Ardoino, chief technical officer at Tether, said in a statement that “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, and that this may be driving the appeal of Tether Gold, as well as other gold-backed stablecoins.”
The growing popularity of gold comes at a truly unprecedented time in modern history due to the COVID-19 pandemic. It has also led governments around the world to introduce monetary stimulus of all kinds to combat the serious effects of deadly viruses.
Meanwhile, US-China escalation has become the latest catalyst behind the recent rise in gold. Weakening relations between the world’s two largest economies have reduced investor sentiment as investors seek security in the traditional haven, gold.
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