Tether launches new USD stablecoin aUSDT
Stablecoin issuer Tether recently announced the launch of a new synthetic U.S. dollar stablecoin "aUSDT" that tracks the value of the U.S. dollar but is backed by gold reserves. Users can mint this new currency through XAUT tokens that track the value of gold through over-collateralization.
aUSDT is built by the Alloy by Tether platform. Officially, the asset class launched by Alloy by Tether is called "Tethered Assets". The goal is to maintain the price of these currencies through stabilization strategies and maintain the same level as certain reference assets (such as US dollars or gold) prices are consistent.
These strategies include using liquid assets for over-collateralization and setting up secondary market liquidity pools (where market participants can more easily buy and sell without worrying about affecting market prices). The purpose of this is to ensure that the value between Tethered Assets and its reference assets remains stable and operates stably in the market.
According to the official website, the Alloy by Tether platform is developed and managed by Moon Gold NA, SA de CV and Moon Gold El Salvador, SA de CV authorized by El Salvador’s CNAD (National Commission for Digital Assets), both of which are subsidiaries of the Tether Group. .
As mentioned above, aUSDT can be minted by staking Tether Gold (XAUT). XAUT is backed by gold actually stored in Switzerland and has a current market value of approximately US$573 million. XAUT is an ERC-20 token issued based on Ethereum, which allows gold to be traded on the chain in the form of tokens.
aUSDT is a useful and innovative currency for users who want to use a currency that “feels as familiar as the U.S. dollar” in digital transactions, payments and remittances, but don’t want to sell their gold stablecoins. It allows users to enjoy the convenience of digital currency while maintaining XAUT as an investment asset.
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What are the advantages of using gold as a value support?
What’s the point of aUSDT value tracking the US dollar but being backed by gold reserves?
aUSDT has the same value as the US dollar (1 aUSDT = 1 US dollar), but its actual value support comes from gold. Gold is often considered an "anti-inflation" asset, capable of retaining value during economic instability. Therefore, aUSDT backed by gold may be more stable in the long term than stablecoins backed only by the US dollar.
Even if the U.S. dollar experiences a depreciation, gold usually retains its original value. This means that aUSDT’s intrinsic value guarantee will be stronger and users will have higher confidence in it.
Tether said that such a design not only meets the market's demand for diversified investment tools, but also provides more flexibility so that institutional-level units can better manage their asset portfolios.
"While aUSDT's stability mechanism differs from traditional options like USDT, this innovative solution represents an exciting milestone and we can't wait to see how it interacts with the market." Tether CEO Paul. Paolo Ardoino said.
Source: Bloomberg, The Block
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