Tether Gold (Gold) is a digital asset offered by TG Commodities Limited. One full XAUt token represents one troy fine ounce of gold on a London Good Delivery bar.
The XAUt token can be transferred to any on-chain address from the purchasers' Tether wallet where it is issued after purchase. Specific gold bar(s) will be associated with each on-chain address where Tether Gold is held.
What is Tether Gold?
Tether Gold (XAUt) is a digital asset offered by TG Commodities Limited. One XAUt token represents one troy fine ounce of gold on a London Good Delivery gold bar. XAUt tokens will be capable of being fractionalized up to six decimal places (i.e. in increments as small as 0.000001 troy fine ounce). XAUt will be sold by TG Commodities Limited.
What is the benefit of having physical assets on a blockchain?
Owning physical assets on the blockchain provides holders with the combined benefits of both physical and digital assets. XAUt token holder will be able to enjoy ownership of gold while avoiding drawbacks associated with physical gold, such as high storage costs and limited accessibility.
How can I buy Tether Gold?
You need to have a verified account with TG Commodities Limited that can be opened here. The minimum purchase allowed is 50 XAUt or 50 fine troy ounces (at December 2019 prices 50 XAUt will cost about 75,000 US Dollars). All purchases will be in US Dollars.
Can I get a fractional amount of a Tether Gold token?
Tether Gold tokens will be tradable on exchanges in fractions as small as the exchanges permit. You can see the list of exchanges supporting the Tether Gold token at the end of the page.
What is the custody fee?
There are no custody fees, just a one-time 25 basis point fee at the time you purchase an XAUt from TG Commodities Limited and certain additional fees on redemption (described below).
How can I redeem my Tether Gold tokens?
You need to have a verified account with TG Commodities Limited that can be opened here. You must hold one full bar of gold worth of tokens to request redemption.
If your tokens are allocated to a full bar of gold, you can redeem a number of tokens equal to the number of fine troy ounces of gold contained in your bar of gold.
If your tokens are not allocated to a full bar of gold, we normally request that you deposit 430 tokens to ensure you have enough tokens to redeem a full bar of gold. Our bars of gold (like all LBMA bars of gold) vary in size and can be as big as 430 troy fine ounces. Once you make your deposit, we will reallocate your tokens to one or more full bars of gold bar (as well as, potentially a portion of another bar of gold).
Redemption will occur based on the actual number of troy fine ounces contained in your bar(s) of gold. Redemptions occur on a one token for each fine troy ounce of gold basis.
When a holder of XAUt makes a redemption for physical gold, he or she will be able to take physical ownership of the gold at a location of their choice in Switzerland or request that TG Commodities Limited attempt to sell the gold and receive the cash proceeds from that sale (less TG Commodities Limited’s fees).
If the holder requests TG Commodities Limited to deliver physical gold, TG Commodities Limited will arrange for secure transportation of the physical gold to the delivery location in Switzerland requested by the XAUt holder.
TPML will charge 25 basis points on the value of the gold at the time of redemption of the XAUt tokens in the Swiss gold market, plus the delivery costs. If the holder requests TG Commodities Limited to attempt to sell its physical gold, TG Commodities Limited will attempt to do so in the Swiss gold market.
If the gold is successfully sold, TG Commodities Limited will provide the holder the proceeds from that sale, less a fee of 25 basis points of the proceeds from that sale. Sale proceeds will be wired to the holder in US Dollars.
Sub Asset Class
United States of America