Are there unique risks associated with holding or transacting in Tether Gold?

[chainsniff]

Advanced holders should consider:

Counterparty risk: Tether manages physical gold centrally; any operational failure or mismanagement could impact redemption.

Liquidity risk: While XAUT trades on multiple exchanges, physical redemption can involve fees, delays, or minimum redemption sizes.

Regulatory exposure: Tokenized gold falls under complex jurisdictions; Tether’s compliance and reporting may evolve.

Audit transparency: Unlike on-chain PoR stablecoins, physical bullion requires periodic external verification. Users must stay updated on Tether’s reserve disclosures to ensure peg stability.

[EmTeam]

Custodial dependence is the core risk — if the vault fails, the token fails. 🪙

[alex10]

Liquidity isn’t as deep as stablecoins, which makes fast exits harder. ️