Tether, the crypto company behind the world’s largest stablecoin USDT, held more than 11.6 tons of gold bars to back the value of the tokenized gold offering as investor demand for the yellow metal grew
Xaut’s market cap climbed to more than 1.4 billion in the third quarter as gold rallied to new record highs amid inflation concerns, geopolitical instability and increased demand from central banks. The token continued to deteriorate through October hitting $2.1 billion while gold hit a $4,500 high.
Market cap growth is largely driven by surging demand from retail investors in emerging countries, Tether CEO Paolo Ardoino said Coindesk interview last week.
Tokenized gold allows investors to hold a blockchain-based representation of the physical asset in a crypto wallet without the complexities of custody or logistics that store bullion. It also makes the yellow metal accessible to investors who do not have access to other traditional derivative financial products such as Exchange-Treated Funds (ETF) or opening a Metals account.
Read more: Tether Eyes Fresh Investments To Push USAT StableCoin To 100m Americans In December Launch
