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Tether’s Gold-Backed Stablecoin In Demand As Commodity Hits ATH

July 27, 2020
Tyler Durden

Tether’s Gold-Backed Stablecoin In Demand As Commodity Hits ATH

Tyler Durden

Mon, 07/27/2020 – 12:40

Authored by Turner Wright via CoinTelegraph.com,

The price of gold and Tether’s XAUT rallied to more than $1,900 today, a value not seen since September 2011.

image courtesy of CoinTelegraph

The Tether Gold stablecoin was valued at $1,902 on July 24, putting the price of gold within reach of the commodity’s all-time high set in September 2011.

Gold has risen 22.7% from $1,550 to $1,902 since Tether Gold (XAUT) – a stablecoin allowing ownership of one troy ounce of gold held in a Swiss vault controlled by the company – was released on Jan. 23. According to The Wall Street Journal, the commodity set a new record for closing price at $1,897.50 on July 24, but has yet to reach its record intraday high of $1,921 from 2011.

[ZH: Spot Gold has since reached a record high]

The surge comes just three days after the U.S. government announced a second stimulus bill to counter the economic impact of the COVID-19 pandemic.

“In times of uncertainty, people like having accessibility to gold,” said Paolo Ardoino, Tether Chief Technology Officer (CTO).

“Tether Gold is clearly a product that resonates in these times.”

Bitcoin or gold?

The price of Bitcoin (BTC) briefly rose above $10,000 today after a particularly long stretch of low volatility between $9,000-$9,500. 

However, for gold bugs like Peter Schiff, traders who invest in Bitcoin are not looking for stability. He said that investors aren’t going to “get rich on gold” — or, consequently, gold-backed stablecoins — but they assume less risk in losing more from volatile crypto prices. 

Today Schiff continued to push the idea that “a big drop” in BTC price was inevitable:

Meanwhile, Tether’s USD-backed stablecoin (USDT) reached a market capitalization of more than $10 billion on July 22.