What is aUSDT coin? How aUSDT coin works and how to mint it

The stablecoin USDT issuer Tether announced the launch of "AlloybyTether" on 6month17, which is a new platform that introduces aUSDT, a new platform powered by TetherGold( XAUT) Over-collateralized digital assets. This innovative asset aims to combine the stability and familiarity of the US dollar with the enduring value of gold. So, what exactly is aUSDT? Are there any features? How does it work? In this article, we will take a closer look at this new USD stablecoin.

USD Stablecoin aUSDT

What is it? Tether, the issuer of the cryptocurrency market’s largest stablecoin USDT, announced on June 17 the launch of aUSDT, a new synthetic U.S. dollar over-collateralized by Tether’s gold-backed digital asset XAUt. Will be available on the Ethereum (ETH) blockchain.

aUSDT aims to combine the stability of the US dollar with the security and reliability of gold. According to the announcement, Alloy by Tether, developed by Tether Group members MoonGoldNASAdeCV and MoonGoldElSalvadorSA, is the basis for the newly launched aUSDT coin. Tether CEO Paolo

Ardoino said Alloy is an open platform for creating collateralized synthetic digitalassets and will soon become the basis for the company’s real-world asset tokenization (RWA) platform that will launch later this year. part. In addition, Alloy can create various "tethered assets", which may include income-generating products. According to reports, the platform’s stabilization strategies, such as over-collateralization of liquid assets and secondary market liquidity pools, will ensure price stability for these assets. Ardoino further said: “We are excited to announce the launch of Alloy by Tether and the introduction of a class of digitalassets backed by gold and pegged to a reference fiat currency. Although its stabilization mechanism is different from traditional options such as USDT, this innovative solution Marking an exciting milestone, we eagerly look forward to how it will interact with the rest of the market, and we also plan to offer this innovative technology in our upcoming digitalasset tokenization platform.” How aUSDT works

According to the company, Alloy will be over-collateralized by TetherGold (XAUt), a token that represents ownership of physical gold, but its value will be pegged to the U.S. dollar. This means that the new token acts as a synthetic dollar, reflecting the value and functionality of the U.S. dollar without direct backing. XAUt's current market capitalization is approximately US$573 million. It is reported that the physical gold supporting TetherGold is safely stored in Switzerland. This unique approach allows users to participate in

digital

trading and payments while maintaining gold exposure without having to sell their XAUT holdings. How to mint aUSDT?

Currently, aUSDT is available for minting on the new AlloybyTether platform. To mint aUSDT tokens, users can deposit XAUT as collateral via an Ethereum-compatible smart contract. The aUSDT smart contract ensures transparency by tracking all collateral and minted tokens, while a price oracle continuously evaluates mint-to-value (MTV) ratios to enhance stability. The minting process is designed to be over-collateralized, with the maximum number of new tokens limited to 75% of the collateral value. Less than a day after its launch, the scale of aUSDT has reached US$8.02 million, and approximately 4,962 XAUT are used as collateral, accounting for 0.02% of its circulation.

What does the launch of aUSDT mean?

The launch of TetherAlloy marks a major advancement in the stablecoin market, combining the value stability of the US dollar with the security of gold backing, providing users with a versatile financial tool for a variety of economic activities. Additionally, the new offering highlights Tether’s ambitions beyond its flagship USDT stablecoin, which currently has a market capitalization of $112.5 billion and is backed by U.S. Treasury bills and other securities and investment reserves. The launch of aUSDT introduces a new class of tokens offered by the company called “tethered assets.” Tether said, "A tethered asset is a

digital

asset designed to track the reference price of another asset through a different stabilization mechanism... In the case of AlloyaUSDT, XAUT is over-collateralized, and its price stability is through secondary It is maintained by the supply and demand dynamics of the market (including liquidity pools)." Industry analyst and Stock-to-Flow creator Willy Woo said in an article published on X that this is "Tether's genius business idea." He explained that Tether’s USDT currently profits off U.S. Treasuries, but now the company could issue a stablecoin that profits off gold earnings. This has greater profit potential because over the long term, gold has an interest rate of 8%, while Treasury bills have an interest rate of 0% to 5%.

Woo went on to say that he would not be surprised if Tether issued a bUSDT stablecoin backed by Bitcoin, as the company is building a sizable Bitcoin treasury. However, he added, "Given the drop in the bear market, this doesn't make sense at the moment, but it could happen in future cycles where Bitcoin is larger and less volatile." Summary Overall, Tether’s launch of gold-backed synthetic U.S. dollar aUSDT represents another milestone in the company’s expansion of stablecoin offerings. By leveraging the AlloybyTether platform, users can now deposit and withdraw a digital

asset that combines the stability of the US dollar with the intrinsic value of physical gold.

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