What is a gold backed stablecoin?

This chapter gives a rundown of the stablecoin market with a focus on gold-backed stablecoins, which are in many ways similar to gold ETFs. Bottom line: All of the gold-backed stablecoins on the market are centralized, which means they have counterparty risk. Unlike storing your own physical gold, trusting a company to store your gold is required.

How stablecoins work?

Here are some things to know about how stablecoins work. Definition: What are stablecoins? Stablecoins are a type of Bitcoin alternative (altcoin) that is built to offer more stability than other cryptos.

Is meld gold a good stablecoin?

The last gold-backed stablecoin on our list is Meld Gold. This crypto company has partnered with Algorand, the creator of the Algorand blockchain and ALGO coin. Meld Gold isn't as popular as the other stablecoins listed here, but it could still be a solid option for you.

Which ERC-20 stablecoin is backed by physical gold?

Paxos Gold is another ERC-20 stablecoin backed by physical gold. Each PAXG token is backed by one ounce of a London Good Delivery gold bar, which you will then own upon purchase. Like Tether Gold, you can exchange your PAXG tokens for physical gold or fiat currency if that's your preference. You also won't have to incur any custody fees.