Tether introduces a new synthetic dollar (aUSDT) backed by tokenized gold (XAUT), expanding beyond its USDT stablecoin.
Tether backs aUSDT with its tokenized gold reserves stored in Switzerland.
Tether, the company behind the popular USDT stablecoin, has unveiled Alloy, a pioneering platform on Ethereum designed to mint a gold-backed stablecoin pegged to the U.S. dollar.
aUSDT, the first Tethered asset, just launched!aUSDT is a synthetic dollar over-collateralised by XAUt (Tether Gold).Alloy by Tether is an open platform that allows to create collateralised synthetic digital assets and will soon be part of the new @Tether_to digital assets… https://t.co/J8JyWt9duh
— Paolo Ardoino (@paoloardoino) June 17, 2024
Further, Alloy introduces a new category of tethered assets. It starts with aUSDT, which collateralizes Tether’s XAUT—a token representing physical gold stored in Swiss vaults. This move marks a significant expansion beyond traditional stablecoins, aiming to combine the stability of a USD peg with the vital value of gold.
A Synthetic Dollar Backed by Tokenized Gold
Tether’s announcement puts it at the forefront of digital asset innovation, using blockchain technology to create aUSDT. What sets aUSDT apart is its unique collateralization model? It is backed not by fiat currency but by Tether’s tokenized gold, known as XAUT. The XAUT is valued at approximately $573 million and backed by physical gold reserves stored in Switzerland.
Tether Gold (XAUT) has a smaller market cap compared to Tether’s USDT, which exceeds $112 billion. However, the integration of gold appeals to investors seeking stability amid cryptocurrency volatility. The new aUSDT token was developed with assistance from Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., both part of the Tether Group.
Alloy’s launch also signals Tether’s broader strategy to diversify its offerings, with plans to introduce more synthetic assets soon. Moreover, the rise of platforms like Alloy amid heightened regulatory scrutiny in the crypto space could redefine global perceptions and regulations of digital assets.