Tether (USDT) Launches Gold-Backed Token (aUSDT) Targeting Long-Term Holders

Previously, Tether CEO Paolo Ardoino confidently announced their plan to invest more than $1 billion in various ventures for the next 12 months.

Stablecoin issuer Tether (USDT) has launched a new gold-backed token called Alloy (aUSDT). The token is pegged to the US dollar and will be available on the Ethereum blockchain.

Alloy is backed by Tether’s own tokenized gold (XAUT), which is a digital asset that represents the ownership of physical gold. The stablecoin’s value will be stabilized through supply and demand dynamics on secondary markets.

According to Tether, Alloy is designed to provide long-term holders with exposure to gold, while also offering a dollar-referenced Tethered Asset for payments and day-to-day economic activity.

The company is also launching a new digital assets tokenization platform later this year, and Alloy will be an integral part of that platform. This means that the new aUSDT is only an initial demonstration of what the Alloy platform can do.

With Alloy, users can create other digital assets with different backing mechanics, which has the potential to unlock yield-bearing products in the future. It also offers institutions access to new asset management tools, particularly gold-backed digital assets that could be seamlessly integrated into their portfolios.

Alloy is issued and managed by El Salvador-based Moon Gold NA and Moon Gold El Salvador, respectively. Tether has not disclosed the specific regulatory licenses that these companies hold in El Salvador.

However, Tether is known for its efforts to maintain regulatory compliance. In 2023, the company announced plans to fully register its stablecoin business in the Bahamas.

Despite Alloy being a stablecoin by nature, Tether has not explicitly used the term in its press release. Several news outlets have reported on the launch of Alloy, describing it as a stablecoin.

This omission may be due to the company’s desire to differentiate Alloy from traditional stablecoins. Some experts have begun distinguishing synthetic dollars from stablecoins, highlighting the former’s potential to generate yields.

For instance, Ethena Labs’ USDe crypto is an example of a synthetic dollar that has gained attention in the crypto community.

In an interview with Fortune, the pseudonymous Foobar, founder of Clusters and Delegate Labs, discussed the emergence of synthetic dollars and their potential as an “interesting risk-adjusted opportunity.”

News source：https://www.kdj.com/cryptocurrencies-news/articles/tether-usdt-launches-gold-token-ausdt-targeting-term-holders.html

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