Tether Introduces Gold-Backed Stablecoin aUSDT, Expanding Its Strategy to Diversify Services Beyond USDT

Tether, the company behind the $112 billion market cap USDT, has introduced a new gold-backed stablecoin pegged to the U.S. dollar.

Stablecoin issuer Tether has unveiled a new gold-backed stablecoin pegged to the U.S. dollar. The new stablecoin, dubbed Alloy (aUSDT), marks Tether's first venture into tethered assets and can be minted on the recently launched Alloy by Tether platform.

According to Tether, Alloy is designed as an open platform for creating collateralized synthetic digital assets. The platform's first asset is aUSDT, a token whose price is pegged to the U.S. dollar.

5/ Alloy by Tether provides long-term holders the opportunity to maintain exposure to gold, while in parallel obtaining a dollar-referenced Tethered Asset for payments and day-to-day economy.https://t.co/tuQikMJbJU

Investors can mint aUSDT by depositing Tether's XAUt as collateral. XAUt, with a market capitalization of $570 million, is reportedly backed by physical gold stored in Switzerland.

The aUSDT token is designed for users who want to use cryptocurrency for payments and remittances without having to liquidate their gold-backed tokens. To ensure security, positions must be overcollateralized, allowing users to mint new tokens up to 75% of the collateral value.

The issuance of these assets will be overseen by Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., which are licensed by El Salvador's National Commission of Digital Assets (CNAD).

Tether's strategic expansionThis new offering aligns with Tether's broader strategy to diversify its offerings beyond USDT, the largest stablecoin by market capitalization and a linchpin in the digital asset market.

Last year, Tether ventured into Bitcoin (BTC) mining and artificial intelligence (AI) through a subsidiary jointly owned by BTC miner and data cloud provider Northern Data Group (NB2).

The Alloy platform aims to facilitate the creation of digital versions of various assets and could also introduce yield-bearing products, broadening its appeal to investors seeking stable and innovative financial instruments.

Comparing collateralization strategiesTether's USDT token is backed by a large pool of cash and short-term U.S. T-bills, generating revenue from the interest paid on the bills. USDT is also overcollateralized with an additional $3.7 billion in gold and $5.4 billion in Bitcoin, according to the company's Q1 figures.

In contrast, aUSDT is overcollateralized by Tether Gold (XAUt), making it a synthetic dollar designed to follow the value and functionality of the US dollar without direct dollar backing. Overcollateralization serves as a buffer against gold price declines, ensuring the token maintains its U.S. dollar peg.

By using gold-backed assets to create synthetic digital dollars, Tether is enhancing its offering in the digital asset market, making it more useful for investors and diversifying its offerings.

News source：https://www.kdj.com/cryptocurrencies-news/articles/tether-introduces-gold-stablecoin-ausdt-expanding-strategy-diversify-services-usdt.html

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