Tether Launches a New Synthetic Dollar (aUSD₮) Backed by Gold to Reinforce Its Commitment to Providing Robust and Stable Financial Products

In a bold move to diversify its portfolio and reinforce its commitment to providing robust and stable financial products, Tether has launched a new synthetic dollar backed by gold.

Tether has announced the launch of a new synthetic dollar, backed by gold and trading as aUSD₮. The announcement was made on June 17, 2024, and the new synthetic asset will be available via smart contracts on the Ethereum Mainnet blockchain.

Alloy by Tether, created on Tether’s new platform Alloy, is pegged to the value of Tether Gold (XAU₮), a token that tracks the value of gold.

Alloy by Tether is an open platform that allows the creation of collateralized synthetic digital assets, and was developed by Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V., both members of the Tether Group.

3/ In the case of Alloy by Tether, aUSD₮ is over-collateralised by XAUt and its price stability is maintained through supply/demand dynamics on secondary markets (including liquidity pools). pic.twitter.com/RSiXbGZ2UB

What Makes aUSD₮ by Tether Special?

The introduction of aUSD₮ by Tether is a major development in the cryptocurrency world, as it combines the stability of traditional fiat currencies with the enduring value of gold.

According to the company’s press release, aUSD₮ is over-collateralized by XAU₮, which means it’s backed by physical gold stored in Switzerland and has a market capitalization of about $573 million. This aUSD₮ XAU₮ duo is targeted at users who want to make transactions, payments, and remittances with a currency similar to the US dollar without having to sell their gold-backed digital asset.

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…

Moreover, the press release highlights the importance of this new asset, as it’s backed by gold and pegged to the value of the US dollar, making it an attractive option for users who want to avoid the volatility of cryptocurrencies while still being able to participate in the digital asset economy.

Key Features of Alloy by Tether

Strategic Importance

The launch of Alloy by Tether comes at a time when global economic instability has increased the demand for reliable and stable financial instruments.

By utilizing the enduring value of gold, Tether aims to provide a robust alternative for investors who are looking to protect their wealth against inflation and currency devaluation. Thus, this new offering marks Tether’s grand ambition to expand beyond its USDT stablecoin.

USDT, a token with a market capitalization of $112.5 billion, is pegged to the value of the US dollar and is backed by reserves of US Treasury bills and other securities and investments.

Market Impact

The introduction of Alloy by Tether is set to have a major impact on the cryptocurrency market.

By providing a gold-backed digital asset, Tether is likely to attract a new segment of investors who have been hesitant to enter the crypto space due to concerns over volatility and the lack of tangible backing for cryptocurrencies.

Furthermore, this move could pave the way for other stablecoin issuers to explore asset-backed digital currencies, which will diversify the options available to investors and enhance the overall stability of the crypto market.

News source：https://www.kdj.com/cryptocurrencies-news/articles/tether-launches-synthetic-dollar-ausd-gold-reinforce-commitment-providing-robust-stable-financial-products.html

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