Tether Gold
The steady technological improvements over the past few years have greatly influenced the world of business. There has been a tremendous rise in international business transactions as people exchange ideas, services, and goods from different continents. To facilitate trade between businesses in different nations, financial institutions came up with platforms for electronic cash transfers. These electronic cash transfer platforms are dependent on FOREX rates, which are unstable and vary from one country to another, making them unreliable in most cases. The unsuitability of electronic cash transfer platforms led to the invention of cryptocurrencies such as Tether Crypto and Tether Gold.
Tether Gold (XAUT)
Recently, TG Commodities Limited launched a new product on their platform, Tether Gold. Tether Gold tokens are representatives of ownership of gold; each token is equivalent to one troy fine ounce of physical gold on one specific gold bar. The tether gold tokens are transferable to any tether wallet on the chain and are available as TRC20 and ERC-20 on the Etherium and TRON blockchains, respectively. Although there are no custody fees charged on the Tether Gold tokens, they still give users direct control over the physical gold storage in a Switzerland vault.
How to acquire Tether Gold
To purchase Tether gold tokens, one needs to have a verified account with the TG Commodities Limited. The user account gives one access to both sellers and the gold reserves; they can either buy the tokens from an existing user or buy directly from the reserves. According to TG Commodities Limited, the minimum amount of tether Gold tokens one can buy is 50 XAUT. Also, one should note that all the purchases are made in dollars. By the end of 2019, 50 fine troy ounces of gold were valued at 75,000 US dollars.
Advantages of Tether Gold
With the increased instability of currencies, one should secure their resources in the form of assets. However, physical assets can be a bad idea since they involve high costs of storage and limited accessibility. Tether gold tokens are digital assets with unlimited access and zero storage charges. Tether gold is one of the best options for having physical assets on a blockchain since, just like with tangible assets, the Tether Gold Tokens can be traded in fractional amounts. The fractional exchanges can be as small as permitted by the exchange regulations.
How to redeem Tether Gold Tokens
To redeem tether gold tokens, one must have tokens equal to one full bar of gold. The tokens redeemable have to be equal to the number of fine troy ounces contained in the bar of gold owned. If the tokens are not equivalent to a full gold bar, the user is advised to 430 tokens to ensure they have a full gold bar. The gold bars vary in size, and some are as big as 430 troy fine ounces. Once the deposit is made, the tokens are allocated to one full gold bar or, in some cases, more than one gold bar.
Tether Gold tokens as physical gold
If one wishes to redeem physical gold, the tokens redeemed will grant them ownership of physical gold at a location of their choice in Switzerland. If there is a need for the gold to be sold, one can request TG Commodities who will, in turn, attempt to sell the gold on the Swiss gold market and receive proceeds from the sale at a fee. If the account holder requests for physical gold, TG commodities Limited arranges for the gold to be delivered at the user’s location of choice in Switzerland at a fee.
Introduction of Tether Gold Tokens came in handy, especially during the coronavirus pandemic. Since most currencies are falling in value due to the interrupted economic activities, investors can purchase the gold tokens and resell them later. Since the gold tokens are dependent on the value of gold, they are more likely to remain stable even as currencies exhibit a downward trend. However, the conditions for redeeming the tokens make it an inconvenient option in cases where resources need to be moved urgently. One should explore other options available such as bitcoins.