Tether brings gold to the Ethereum blockchain
Tether Limited is best known in the crypto scene as the publisher of the stable coins Tether (USDT). Each unit of this cryptocurrency belongs to the equivalent of one US dollar. The main US dollar liquidity on the stock exchanges, traders can quickly change between Bitcoin and US dollar without having to go through banks. At the beginning of the year, the company heard the offer of a gold-covered stable coin. Each unit of this cryptocurrency is covered by one troy ounce of gold, when controlled. Again, the company is building the bridge between its own and the crypto world.
The mapping of the precious metal with ERC-20 tokens enables faster gold trading. Tether itself is responsible for storing the precious metal. In order to “print” new digital numbers, the company must therefore also deposit gold in the safe. But there are currently delivery difficulties, as the crypto magazine TheBlock had on March 26, the company is currently having problems buying gold in Switzerland in order to release various new XAUt units. This is the case in which the corona crisis is compounded, the country is in lockdown mode. According to the anonymous source that the magazine belongs to, Tether is currently looking for a new source for gold.