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Tether Gold breaks 2 billion: The rise of digital gold!
Tether Gold Reaches $2 Billion Market Cap, Attracted by Gold Price Surge and Institutional Interest.
Tether Gold breaks 2 billion: The rise of digital gold!
The digital gold currency Tether Gold (XAUT) recently reached a significant market capitalization of over $2 billion. How Crypto News reported, the token's value rose from $1.44 billion at the start of the third quarter to about $2.1 billion in just a few weeks. This development highlights investors' growing interest in digital assets backed by physical gold.
Tether Gold secures itself with more than 375,000 troy ounces of physical gold in a Swiss vault. This gold holding ensures that the token maintains a stable value. Tether CEO Paolo Ardoino emphasizes that Tether Gold demonstrates the viability of physical assets on the blockchain. The token holds a 1:1 peg, according to data from TG Commodities, which operates within El Salvador's regulatory framework.
Increasing demand and market conditions
Demand for Tether Gold is also fueled by current discount conditions in commodity markets. Gold prices recently exceeded $3,850 per troy ounce, attracting institutional investors in particular. The increase in gold prices is attributed to global inflation, geopolitical tensions and central banks accumulating gold. There are currently almost 140,000 Tether Gold Tokens that are still for sale, which enables high liquidity in the market.
The entire tokenized gold market currently has a market capitalization of $3.72 billion, despite a recent decline of 2.6 percent. PAX Gold (PAXG) is Tether Gold's main competitor with a market cap of approximately $1.31 billion. The growth of the digital gold currency market could change the way investors access physical gold.
Institutional support
A significant event in the development of Tether Gold was the $150 million financing led by Antalpha Platform Holding Company to convert a Nasdaq-listed company into Aurelion Inc., which will primarily hold Tether Gold. This move is supported by Antalpha, Tether's commodities division, and Kiara Capital, and promotes institutional legitimacy for blockchain-based gold tokens.
Overall, Tether Gold's development shows how digital currencies and traditional assets are becoming increasingly intertwined, opening up a new era of investment opportunities.