Comparison and Review: Tether Gold (XAU₮) vs Tether (USDT)
Tether Gold (XAU₮) and Tether (USDT) are both popular cryptocurrencies in the market. While they have some similarities, they serve different purposes and have unique features.
Tether Gold (XAU₮)
- Symbol: XAU₮
- Name: Tether Gold
- Asset Platform: Ethereum and TRON
- Categories: Ethereum Ecosystem, Stablecoins, Tokenized Gold, Asset-backed Tokens
- Market Cap Rank: 86
- Price Change Percentage (30 days): 86%
Each XAU₮ token represents ownership of one troy fine ounce of physical gold on a specific gold bar. XAU₮ is available as an ERC-20 token on the Ethereum blockchain and as a TRC20 token on the TRON blockchain. It can be transferred to any on-chain address from the purchasers' Tether wallet. Tether Gold offers zero custody fees and has direct control over the physical gold storage, which is safely held in a Switzerland vault with top-notch security measures. It is considered the best way to hold gold in the digital space.
- Symbol: USDT
- Name: Tether
- Asset Platform: Ethereum
- Categories: Mantle Ecosystem, Solana Ecosystem, Canto Ecosystem, Tezos Ecosystem, EthereumPoW Ecosystem, Harmony Ecosystem, Gnosis Chain Ecosystem, Velas Ecosystem, Optimism Ecosystem, Metis Ecosystem, Cronos Ecosystem, Ethereum Ecosystem, Moonbeam Ecosystem, Near Protocol Ecosystem, Fantom Ecosystem, Arbitrum Ecosystem, Moonriver Ecosystem, Avalanche Ecosystem, BNB Chain Ecosystem, Polygon Ecosystem, USD Stablecoin, Stablecoins
- Market Cap Rank: 3
- Price Change Percentage (30 days): -0.05858%
Tether (USDT) is a stablecoin designed to mirror the value of the U.S. dollar. It is the most popular stable coin and is widely used as a substitute for dollars on many exchanges. Tether converts cash into digital currency and anchors the value of the coin to national currencies like USD, Euro, and Yen. It is 100% backed by USD held in reserve. Tether provides stability to the volatile crypto space and offers liquidity to exchanges that cannot deal in dollars. It is governed by Tether Limited, a company based in the British Virgin Islands.
Although both XAU₮ and USDT are cryptocurrencies and operate on the Ethereum blockchain, they serve different purposes. XAU₮ represents ownership of physical gold, while USDT aims to act as a stable dollar substitute.
XAU₮ has the advantage of being directly linked to physical gold, providing investors with exposure to the precious metal. It offers zero custody fees and has control over the storage of physical gold, ensuring security and authenticity.
On the other hand, USDT provides stability in the crypto market and facilitates trading by acting as a dollar replacement on exchanges. It allows users to convert fiat currency quickly and cheaply, bypassing traditional banking systems.
In summary, Tether Gold (XAU₮) and Tether (USDT) have distinct features and serve different purposes. XAU₮ offers investors a way to hold gold digitally, providing control over physical gold storage. USDT, on the other hand, provides stability and liquidity to the volatile crypto market. Both cryptocurrencies have their own merits and cater to different needs within the industry.