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Tether gold stablecoin XAUt market capitalization surpasses 86 million USD, leading a new trend in digital gold.
XAUt: The gold stablecoin issued by Tether is rising rapidly
Recently, the gold stablecoin XAUt issued by Tether has performed outstandingly, with a rapid increase in market capitalization. XAUt was launched in late January this year, and within just over four months, its market value has risen to about $86 million, with a daily trading volume exceeding $110,000. It is currently listed on five trading platforms.
The rapid growth of XAUt is mainly attributed to the rising demand from investors for physical gold against the backdrop of the global economic crisis. Each XAUt is anchored to one ounce of physical gold, providing users with a convenient channel for gold investment. The advantages of XAUt include no custody fees, support for redeeming physical gold, divisibility up to six decimal places, and 24-hour trading.
Currently, XAUt is mainly traded in the form of derivatives, including perpetual contracts, leveraged trading, and more. Several trading platforms also plan to introduce more XAUt-related trading varieties, such as quarterly futures and spot margin trading. In addition, some platforms are considering integrating XAUt into the Lightning Network to further enhance its trading efficiency.
Despite the strong development momentum of XAUt, industry insiders generally believe it is difficult to reach the market capitalization scale of USDt. The reason lies in the higher volatility of XAUt compared to USDt, and the issuance of stablecoins pegged to gold is more complex than that of fiat stablecoins. At the same time, USDt has become the basic medium for cryptocurrency trading and the default token for derivatives trading, a position that is hard to shake.
However, there are views that gold-backed stablecoins may reach a market value of hundreds of billions of dollars in the future. Currently, XAUt faces competition in the market from other gold stablecoins, such as PAX Gold. Additionally, Tether's ability to maintain reserves in the case of a shortage of gold supply is also being questioned.
Whether XAUt can become a true "digital gold" and whether Tether can gain the reputation of "digital gold" beyond "coin reserve" and "peer-to-peer electronic cash" still needs time to verify.