Tether Gold surges amid market volatility
Tether Gold, a digital asset providing exposure to physical gold (XAU), has had a huge uptake in demand to become the biggest gold-backed token amid turbulent global financial markets.
Tether Gold, which now has a market capitalisation of more than USD21 million, has surpassed its nearest rival PAX Gold, providing investors with the easiest way to own and trade physical gold within a growing digital asset ecosystem.
“Tether Gold has had a really great start,” says Paolo Ardoino, CTO at Tether. “But I believe that this is nothing in comparison to the potential of this new asset, especially in the context of increased investor interest in risk diversification and capital safety against political uncertainty. Tether Gold offers diversification in terms of risk and volatility and I expect it to reach a market capitalisation of at least USD100 million.”
Earlier this week, the Dow Jones Industrial Average surged more than 1,200 points, or 5 per cent, on hopes that central banks will take action to shelter the global economy from the effects of the coronavirus outbreak. Meanwhile, the spot price of gold has increased about 24 per cent over the past year to USD1,603 an ounce, amid increasing investor interest in owning the asset.