Tether (XAUT)

Market Data

Token Functionalities

System Attributes

Operating Model

<p>Tether&nbsp;is&nbsp;an&nbsp;off-chain&nbsp;business.&nbsp;The&nbsp;system&nbsp;relies&nbsp;on&nbsp;identifiable&nbsp;issuer&nbsp;entities&nbsp;and&nbsp;appointed&nbsp;service&nbsp;providers&nbsp;for&nbsp;account&nbsp;eligibility,&nbsp;issuance,&nbsp;redemption,&nbsp;compliance,&nbsp;reserve&nbsp;management,&nbsp;custody&nbsp;and&nbsp;supported-chain&nbsp;decisions.&nbsp;Token&nbsp;contracts&nbsp;on&nbsp;public&nbsp;blockchains&nbsp;enable&nbsp;transfer&nbsp;and&nbsp;distribution&nbsp;of&nbsp;USDT&nbsp;and&nbsp;XAUT,&nbsp;but&nbsp;they&nbsp;do&nbsp;not&nbsp;independently&nbsp;provide&nbsp;the&nbsp;issuer,&nbsp;reserve&nbsp;or&nbsp;custody&nbsp;service.&nbsp;External&nbsp;settlement&nbsp;rails,&nbsp;exchanges,&nbsp;payment&nbsp;processors&nbsp;and&nbsp;decentralised&nbsp;finance&nbsp;integrations&nbsp;extend&nbsp;where&nbsp;the&nbsp;tokens&nbsp;can&nbsp;be&nbsp;used,&nbsp;but&nbsp;they&nbsp;are&nbsp;outside&nbsp;the&nbsp;Tether&nbsp;operating&nbsp;model&nbsp;because&nbsp;they&nbsp;do&nbsp;not&nbsp;control&nbsp;the&nbsp;core&nbsp;issuance,&nbsp;redemption&nbsp;or&nbsp;reserve&nbsp;processes.</p>

Value Creation

<p>Tether&nbsp;has&nbsp;off-chain&nbsp;value&nbsp;creation.&nbsp;The&nbsp;core&nbsp;product&nbsp;is&nbsp;created&nbsp;through&nbsp;off-chain&nbsp;reserve&nbsp;management,&nbsp;legal&nbsp;claims,&nbsp;account&nbsp;administration,&nbsp;custody&nbsp;arrangements,&nbsp;compliance&nbsp;processes&nbsp;and&nbsp;redemption&nbsp;operations.&nbsp;For&nbsp;USDT,&nbsp;the&nbsp;valuable&nbsp;service&nbsp;is&nbsp;the&nbsp;issuance&nbsp;and&nbsp;redemption&nbsp;of&nbsp;a&nbsp;fiat-referenced&nbsp;stable&nbsp;value&nbsp;instrument&nbsp;backed&nbsp;by&nbsp;issuer-managed&nbsp;reserves.&nbsp;For&nbsp;XAUT,&nbsp;the&nbsp;valuable&nbsp;service&nbsp;is&nbsp;the&nbsp;issuance&nbsp;and&nbsp;servicing&nbsp;of&nbsp;a&nbsp;tokenised&nbsp;claim&nbsp;to&nbsp;physical&nbsp;gold&nbsp;held&nbsp;through&nbsp;custody&nbsp;arrangements.&nbsp;On-chain&nbsp;token&nbsp;contracts&nbsp;record&nbsp;balances&nbsp;and&nbsp;enable&nbsp;transfers,&nbsp;but&nbsp;they&nbsp;function&nbsp;mainly&nbsp;as&nbsp;distribution&nbsp;and&nbsp;accounting&nbsp;rails&nbsp;rather&nbsp;than&nbsp;the&nbsp;source&nbsp;of&nbsp;the&nbsp;reserve-backed&nbsp;or&nbsp;gold-backed&nbsp;economic&nbsp;claim.</p>

Value Capture

<p>Tether&nbsp;has&nbsp;off-chain&nbsp;value&nbsp;capture&nbsp;and&nbsp;routing.&nbsp;Fees,&nbsp;reserve&nbsp;income,&nbsp;investment&nbsp;spread&nbsp;and&nbsp;issuer&nbsp;surplus&nbsp;are&nbsp;captured&nbsp;through&nbsp;Tether&nbsp;entities&nbsp;rather&nbsp;than&nbsp;routed&nbsp;to&nbsp;USDT&nbsp;or&nbsp;XAUT&nbsp;holders&nbsp;through&nbsp;an&nbsp;on-chain&nbsp;value-distribution&nbsp;mechanism.&nbsp;USDT&nbsp;holders&nbsp;receive&nbsp;a&nbsp;redemption&nbsp;right&nbsp;subject&nbsp;to&nbsp;Tether’s&nbsp;terms,&nbsp;but&nbsp;they&nbsp;do&nbsp;not&nbsp;receive&nbsp;a&nbsp;claim&nbsp;on&nbsp;reserve&nbsp;income&nbsp;or&nbsp;issuer&nbsp;profits.&nbsp;XAUT&nbsp;holders&nbsp;receive&nbsp;an&nbsp;ownership&nbsp;claim&nbsp;linked&nbsp;to&nbsp;physical&nbsp;gold,&nbsp;but&nbsp;not&nbsp;a&nbsp;general&nbsp;claim&nbsp;on&nbsp;Tether&nbsp;Gold’s&nbsp;operating&nbsp;economics.&nbsp;External&nbsp;use&nbsp;of&nbsp;USDT&nbsp;or&nbsp;XAUT&nbsp;in&nbsp;payments,&nbsp;collateral&nbsp;venues&nbsp;or&nbsp;other&nbsp;integrations&nbsp;may&nbsp;increase&nbsp;token&nbsp;functionality,&nbsp;but&nbsp;it&nbsp;does&nbsp;not&nbsp;alter&nbsp;the&nbsp;system-level&nbsp;routing&nbsp;of&nbsp;issuer&nbsp;value&nbsp;capture.</p>

Governance

The Tether Board unilaterally controls all economic parameters, reserve management, and technical upgrades.