They are preferred by investors who prefer a more reliable form of collateral, with gold and silver being the most commonly used by way of their stablecoins PAXG (Pax Gold) and SLVT (SilverTokens).
- PAX Gold (PAXG)
- Tether Gold (XAUt)
- SilverTokens (SLVT)
These stablecoins are also less susceptible to inflation compared with fiat backed stablecoins and make a good choice for those looking for exposure to precious metals who find it difficult to get direct access. Their main drawback, however, is that they are far less liquid than other choices.