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Tokenized Gold: The Stable Currency Worth over $1 Billion

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According to reports, CoinGecko\’s data shows that as gold prices approach historical highs, the total market value of token gold assets has exceeded $1 billion. Tokenized gold is a

Tokenized Gold: The Stable Currency Worth over $1 Billion

According to reports, CoinGecko’s data shows that as gold prices approach historical highs, the total market value of token gold assets has exceeded $1 billion. Tokenized gold is a stable currency whose price is linked to gold. It provides investors with a way to invest in gold, without the need to pay ETF management fees or bear the storage cost of gold bars. The two largest gold stable coins currently are PAXG issued by Paxos Trust Company, a New York financial technology company, and XAUT issued by Tether. As of now, the market values of PAXG and XAUT are $518 million and $499 million, respectively.

The total market value of token gold assets exceeds 1 billion US dollars

In recent times, as gold prices approach all-time highs, the demand for tokenized gold has increased significantly. According to CoinGecko’s data, the total market value of gold assets has exceeded $1 billion, indicating the growing popularity of tokenized gold as a stable currency.

What is Tokenized Gold?

Tokenized gold is a digital asset that can be bought and sold on the blockchain, its price being linked to the value of gold. Each token represents a certain amount of gold and can be exchanged for the underlying asset, which can be stored in secure vaults. It provides investors with a way to invest in gold without the need to pay management fees or bear the storage cost of gold bars.

The Benefits of Gold-backed Stable Coins

Gold-backed stable coins, like PAXG and XAUT, are an investment in stable and secure assets that help diversify investment portfolios. As traditional investments lose value, gold prices often rise, making it an excellent hedge against inflation. Gold is considered a classic store of value and has been used as a currency for centuries.
Moreover, tokenized gold offers investors the opportunity to participate in the gold market without having to worry about storing or safeguarding physical gold, providing added security and convenience.

PAXG and XAUT: The Two Largest Gold-backed Stable Coins

Currently, the two largest gold stable coins in the market are PAXG and XAUT, issued by Paxos Trust Company and Tether, respectively. As of now, the market values of PAXG and XAUT are $518 million and $499 million, respectively.

PAXG

PAXG token represents one fine troy ounce of a 400 oz London Good Delivery gold bar, stored in Brinks vaults in London. The gold bars are audited and residents of the United States can even redeem tokens for physical gold.

XAUT

XAUT represents one fine troy ounce of gold and is backed by gold held in a Swiss vault. It is issued by Tether, a company known for its USDT stable coin. XAUT is ERC-20 compatible, making it easy to store and transfer on Ethereum-based wallets.

Conclusion

In conclusion, as the demand for tokenized assets increases, tokenized gold has emerged as an excellent investment option. It provides investors with a secure way to invest in gold but without the added cost of storing the actual metal. With the total market value of gold assets exceeding $1 billion, PAXG and XAUT have become the two largest gold-backed stable coins currently in the market.

FAQs

1. What is tokenized gold?
Tokenized gold is a digital asset whose price is linked to the value of gold, and it represents a certain amount of physical gold.
2. What is the benefit of investing in tokenized gold?
Tokenized gold is a secure way to invest in gold without the need to worry about storage or physical security. It is also an excellent hedge against inflation.
3. What are the largest gold-backed stable coins currently in the market?
PAXG and XAUT are currently the two largest gold-backed stable coins in the market with a market value of $518 million and $499 million, respectively.

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