Leading offshore law firm Appleby recently advised Tether on the launch of Tether Gold.
Building on its track record for product innovation, Tether, the company behind the biggest stablecoin in the world, launched Tether Gold (XAUt) on 23 January 2020. Each Tether Gold token (XAUt) represents ownership of one troy fine ounce of physical gold on a specific gold bar, providing holders with the combined benefits of both physical and digital assets while avoiding the drawbacks associated with owning physical gold, including high storage costs and limited accessibility.
XAUt is available as an ERC-20 token on the Ethereum blockchain and as a TRC20 token on the TRON blockchain and can be transferred to any on-chain address from the holder's Tether wallet. XAUt holders also have the option to redeem their Tether Gold for physical gold.
Appleby advised Tether on its offshore structuring and regulatory compliance for the issuance of Tether Gold. The Appleby team was led by BVI partner Andrew Jowett with assistance from Peter Colegate, counsel in Appleby's Cayman office, and Rebecca Jack, senior associate in Appleby's BVI office. Appleby advised Tether alongside US counsel, Steptoe & Johnson LLP.
Commenting on this transaction, Andrew Jowett said: "In recent months we have seen a growing demand from investors for digital exposure to real world assets. The launch of Tether Gold meets that demand and builds on Tether's reputation for developing innovative first-to-market products."
With technological innovation transforming offshore businesses and markets, Appleby has led the way amongst the offshore firms by launching a dedicated Global Technology and Innovation Group. With experts in the BVI, Cayman Islands and across its network of 10 offices, the group supports clients across a broad range of emerging technologies.