Tether CEO, Paolo Ardoino, has announced aUSDT, a new synthetic dollar over-collateralized by XAUt, Tether’s gold-backed digital asset. This move has been hailed as a "genius business idea" by industry analyst Willy Woo, who noted that Tether can now issue a stablecoin that earns on gold gains, which have a higher long-term potential for profits compared to U.S. Treasury Bills.

Woo also speculated on the possibility of Tether issuing a bUSDT stablecoin backed by Bitcoin, given the firm's growing BTC treasury. However, he added that this might not be feasible in the current bear market.

In addition to aUSDT, Ardoino introduced Alloy by Tether, an open platform that allows users to create collateralized synthetic digital assets. This will soon be part of the new Tether digital asset tokenization platform, which is set to launch later this year as the company expands into real-world asset tokenization.

Tether, the market leader for dollar-pegged stablecoins, has a record-high circulation of $112.5 billion USDT and an overall market share of around 70%. With the total stablecoin market cap at $162 billion, representing around 6.5% of the total crypto market, Tether's innovative approach to stablecoins could potentially reshape the DeFi landscape.