What is Tether Gold?
Tether Gold (XAUt) is a "gold" token whose price follows the value of physical gold. Each token represents the right to one troy ounce of London Good Delivery standard bullion gold stored in a secure vault in Switzerland.
How it works
The issuer assigns specific serial numbers of ingots to token holders, and owners of large volumes can request physical delivery of metal or token redemption. XAUt circulates on public blockchains, so gold can be bought, sold, and transferred 24/7 with precision down to fractions of an ounce.
Pros and cons
- Pros: access to gold without purchasing and storing ingots, divisibility, 24/7 trading, protective asset in portfolio.
- Cons: dependence on issuer integrity and vault security, redemption fees for metal conversion, lower liquidity than exchange-traded gold funds.