Tether Introduces aUSDT: A Gold-Backed Dollar-Pegged Stablecoin
Tether has made waves in the cryptocurrency world with the introduction of a new platform called Alloy by Tether, which includes the unveiling of the aUSDT token. This stablecoin is unique in that it is over-collateralized by Tether Gold (XAUt), a token representing physical gold ownership, while its value remains pegged to the US dollar. Essentially, aUSDT acts as a synthetic dollar, providing users with the value and functionality of the US dollar without direct backing.
The aUSDT token is classified as a tethered asset, designed to track reference asset prices through over-collateralization and secondary market liquidity pools. Users have the ability to mint aUSDT by depositing XAUt through a smart contract and price oracles, enabling transactions with aUSDT while still holding their gold-backed Tether asset.
Alloy was developed by Tether subsidiaries Moon Gold and Moon Gold El Salvador and is set to be integrated into a digital asset tokenization platform launching later this year, as confirmed by Tether CEO Paolo Ardoino. While aUSDT is Tether’s first tethered asset, the concept of a synthetic dollar is not entirely new, with Ethena Labs introducing USDe, an Ether-backed, dollar-pegged synthetic dollar earlier this year.
Comparing aUSDT to USDe and other stablecoins, founder of clusters.xyz, @0xfoobar, highlighted Tether’s high liquidity and centralized control, leading to “smarter decision-making and less principal-agent risk.” The launch of Alloy by Tether represents a significant advancement in the stablecoin market, combining the stability of the US dollar with the security of gold backing, offering users a versatile financial tool for various economic activities.
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