Tether Operations Limited announced yesterday that it will launch two of its products, Tether Gold (XAUT) and Euro Tether (EURT) on cryptocurrency exchange XT.com.
This further amplifies the reach of the company’s secondary tokens, which can now count on the presence of an additional crypto marketplace
Let’s look at all the details together.
Tether Gold (XAUT) and Euro Tether (EURT) are about to land on XT.com
Tether Operations Limited, the same company that manages and controls the issuance of USDT, announced yesterday that Tether Gold (XAUT) and Euro Tether (EURT) will be officially launched today on the social-based crypto exchange XT.com.
The platform was launched in Hong Kong in 2018 by Weber Woo, an entrepreneur who pioneered the blockchain world back in 2013, and can already count a registered user base of 6 million and 500 thousand monthly active participants.
The listing of Tether Gold (XAUT) and Euro Tether (EURT) within the markets section represents a small step forward for the exchange toward mainstream adoption of cryptocurrency use.
On the other hand, for Tether, which dominates the stablecoin market with its flagship USDT product, the listing of the two secondary tokens represents an opportunity to expand its hegemony even further.
As a reminder, Tether Gold (XAUT) represents a cryptocurrency that grants its holder ownership of physical gold, with each token being equivalent to one troy ounce of a London Good Delivery gold bar stored in a Swiss financial institution.
Euro Tether (EURT), on the other hand, consists of a stablecoin pegged 1:1 to the value of the euro, created in 2020 to push the use of blockchain-based digital currencies in Europe.
Paolo Ardoino, CTO of Tether, commented on the start of the collaboration with XT.com as follows:
“We are thrilled the pioneer in social infused exchanges, XT.COM, has decided to facilitate users across the world to access and own digital assets backed by the Euro and physical gold. As the company behind the leading stablecoin in the market today, recognized for its exceptional liquidity, expanding market share, and widespread acceptance, this further emphasizes our steadfast commitment to unlocking financial liberation and fostering economic inclusivity for communities worldwide.”
EURT and XAUT: gold and euro crypto markets compared
Unlike the market for cryptocurrencies that take up the value of gold, the market for euro-pegged stablecoins is decidedly more booming, with Tether obviously dominating this environment.
While Tether Gold can only count on one rival present on the Ethereum blockchain, namely Pax Gold (PAXG), Euro Tether already counts a wide range of highly qualified competitors.
After the European Parliament approved MiCa (Market in Crypto Assets), effectively legitimizing the use of stablecoins in Europe, the market is embracing the entry of numerous players who want to offer their services on the entire continent.
Moreover, until recently all major crypto investors within the Union relied exclusively on digital currencies pegged to the US dollar, such as USDT, USDC and DAI, as there was no reliable solution pegged to the value of the euro found in liquid markets.
However, now there are finally beginning to be more palatable options for European traders, who, with the launch of the new regulations and the expansion of this niche market, will be able to trade with peace of mind.
Euro Tether, 78% present on Ethereum and about 20% on Omni, currently capitalizes $154 million and is the most dominant euro-pegged stablecoin.
Overall, the market for these products is worth just under $600 million, with ample scope for expansion in the coming years.
In any case, although we are beginning to see glimmers of adoption and growth for these kinds of currencies, it is worth mentioning that the US dollar pegged stablecoin sector still handles the majority of exchanges that take place in crypto.
Approximately 99% of cryptocurrencies that capture the value of a FIAT currency, launched on the Ethereum blockchain, refer to the USD value.
The discrepancy is justified by the fact that USD still serves as the dominant currency in the global context of financial security exchanges and has a different weight than the use of the EURO.