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Huobi Global says that customers will soon be able to access Tether Gold and Euro Tether stablecoins, representing ownership of assets.
According to reports, Tether is launching two new stablecoins – Tether Gold (XAUT) and Euro Tether (EURT) – on popular crypto exchange Huobi Global. This development means that the exchange’s customers will now have access to stablecoins representing ownership of physical gold and Euro-pegged tokens.
Commenting on the new development, Paolo Ardoino, chief technical officer at the stablecoin issuer, said:
“We are thrilled to be launching XAU₮ and EUR₮ on one of the oldest and leading exchanges in the world.”
In addition, the Tether CTO stated:
“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.”
Huobi Lists Tether Gold & Euro Tether Despite Crypto Winter
Huobi’s decision to list Tether Gold and Euro Tether comes amid the general underperformance of digital assets (crypto winter). In addition, the exchange’s announcement comes roughly a month after the demise of another prominent crypto exchange – FTX. The once second-largest, Bahamian-based exchange filed for Chapter 11 Bankruptcy in the US on November 11th. Since then, FTX’s management has gone into hiding amid a torrent of allegations and investigations regarding the mismanagement of customers’ funds.
In the wake of FTX’s collapse, Tether’s stablecoins have faced increasing scrutiny as the crypto space remains on edge. Several leading mainstream media outlets recently renewed their focus on the stablecoin’s alleged reserves, which appears to agitate the company’s top execs. The Wall Street Journal published an article on December 1st expressing doubt over Tether’s sufficient reserves claims. According to the WSJ, the stablecoin issuer’s rising loans add substantial risk to an already-frayed digital asset marketplace. Furthermore, the international daily newspaper suggested that Tether might need to be more capable of backing its $65 billion worth of USDT in circulation.
The WSJ also addressed the lack of disclosure and limited transparency of Tether’s alleged robust reserves as cause for concern. A previous Tether report disclosed only US dollar amounts for the loans while not specifying whether the rest were in Tether tokens. In addition, the company report alluded to full collateralization by liquid assets of said loans. However, the WSJ article quoted Crane Data President Peter Crane’s skepticism of the Tether claims. According to Crane at the time, he has “been very skeptical and in disbelief that they can get away with the lack of disclosure and with the limited transparency. If you do have reserves, why wouldn’t you show them?”
Launched in 2014, Tether is an asset-backed crypto stablecoin and is the largest stablecoin issuer by market cap. Its USDT stablecoin pegs to the US dollar at a 1:1 ratio, and as of July 2022 was minted on ten blockchains and protocols.