The launch of Tether's gold-backed stablecoin aUSDT through the Tether Gold token (XAUT) is a landmark event. However, its success raises serious doubts among market participants. The main concerns are related to the following factors:
1. There are serious doubts about Tether's ability to supply USDT with enough real physical gold, given the huge gap between paper gold and physical reserves.
2. To gain the trust of the Tether market, it will be necessary to provide an unprecedented level of transparency of its gold reserves and verification mechanisms. So far, this has not been seen.
3. Physical storage of large volumes of gold requires significant expenses, making the cost of owning such assets very high.
4. Despite its reputation as a safe haven, gold prices are also subject to significant fluctuations, calling into question the stability of the stablecoin pegged to it.
5. Lack of trust in Tether. After past complaints from regulators, Tether has not yet regained full trust within the crypto community.
Thus, while the idea of aUSDT is attractive in theory, it is being met with considerable skepticism in practice due to the potential risks of under-collateralization, lack of transparency, and high costs. Without strict regulation and verification of collateral, the prospects for widespread adoption of USDT remain questionable. It might make more sense for stablecoins to use more transparent and regulated reserve methods.