Tether launches euro and gold-pegged stablecoins

Tether launches euro and gold-pegged stablecoins

06.12.2022 13:27 (Updated 06.12.2022 13:12)
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by Sviatoslav Pinchuk
2 min read

USDT stablecoin issuer Tether has announced plans to launch Tether Euro and Tether Gold on December 8. Both stablecoins are available to customers on the crypto exchange, Huobi.

Tether Gold (XAUT) and Euro Tether (EURT) represent ownership of real gold and euro-pegged tokens, respectively. EURT and XAUT deposits are now live on Huobi:

The EURT, XAUT spot trading (EURT/USDT, EURT/USDD, XAUT/USDT, XAUT/USDD) will open when the deposit volume meets the demand of market trading, which will be officially announced in advance. EURT, XAUT withdrawals will open at 14:00 (UTC) on December 9.

Related: Huobi rebrands to expand globally

Tether CTO Paolo Adroino disclosed in the official Tether blog post:

We are thrilled to be launching XAU₮ and EUR₮ on one of the oldest and leading exchanges in the world. By gaining access to the stablecoin that represents ownership of physical gold and the Euro-pegged stablecoin that’s backed by the same company behind the first, most stable and trusted stablecoin, we believe the Huobi Community will be poised to thrive and continue to grow.

Since the collapse of FTX, Tether has been under scrutiny as the cryptocurrency landscape continues to be in flux. Several mainstream media outlets have recently taken issue with Tether’s published reserves, and fear Tether may be at risk of insolvency. The Wall Street Journal published an article on December 1 stating that the company may not have enough liquidity to make repayments in a crisis. According to the WSJ, the stablecoin issuer’s growing loans pose a significant risk to the recovering cryptocurrency market.

However, Tether continues to defend itself and deny all rumors. The article published on December 1 refutes the speculation expressed by WSJ:

The article had many misconceptions of Tether and USD₮, the most glaring of which was the claim that because Tether’s secured loans of USD₮ were denominated in USD₮, Tether was exposed to a decline in the value of USD₮. 

This completely misses the mark and mistakes the USD₮ itself for the collateral that underpins it. Tether’s secured loans are extremely overcollateralized and even backstopped by Tether’s additional equity if needed. 

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  • Man who simply bought some BTC for domestic needs in 2014 and then forgot about it till 2017. The dude who got Ethereum in 2017 by misclick and sold it in 2018 "just to try". Lost 1 Florida house in XEM in 2018, Sviatoslav finally decided to trade reasonably and now he is one of the most analytical and data-driven trader in Crypto Industry. Has Bachelor Degree of Chinese Interpreter and deep practical experience in competitive niches SEO.

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