Tether Gold
Crypto Overview
Overview
Tether Gold (XAUT) is a digital token launched in January 2020 that represents ownership of physical gold. Each XAUT token represents ownership of one troy fine ounce of gold held in a Swiss vault. The token operates on both Ethereum (ERC-20) and TRON (TRC20) blockchains.
Intended Utility
The primary purpose of XAUT is to provide a digital method for owning and trading physical gold. The token is designed to combine the utility of blockchain technology with the stability and intrinsic value of physical gold. Each token is fully backed by physical gold held in secure vaults, with holders having the right to redeem their tokens for physical gold.
Actual Utility Assessment
XAUT demonstrates genuine utility through its physical gold backing and redemption mechanism. The project maintains transparency through regular attestations of gold reserves by independent accountants. Real-world adoption shows consistent trading volume across major cryptocurrency exchanges, indicating active use for its intended purpose.
Business Model Evaluation
The revenue model is based on traditional gold custody and trading fees rather than interest or speculative mechanisms. The project generates income through: 1) Initial token purchase fees 2) Storage fees for the physical gold 3) Redemption fees when converting tokens to physical gold.
Founder Assessment
XAUT is issued by TG Commodities Limited, a member of the Tether group of companies. While Tether has faced controversies regarding their USDT stablecoin, their gold operations have maintained transparency through regular audits and clear operational procedures. The token distribution is directly tied to physical gold purchases, preventing arbitrary token creation or founder enrichment schemes.
Crypto Impact
To assign a comfort level investing in Tether Gold from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Tether Gold.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.