Tether Unveils New GoldBacked Stablecoin with Overcollateralized Reserves
The company responsible for the leading stablecoin by market cap has announced the launch of a new digital asset backed by physical gold. Tether, the issuer of USDT, is unveiling aUSDT, a digital asset supported by over-collateralized Tether Gold (XAUT).
This new offering, part of a series called Alloy by Tether, introduces tethered assets that aim to mirror the price movements of reference assets through stabilization methods such as over-collateralization with liquid assets and secondary market liquidity pools. This unique approach ensures a consistent value and stability relationship between the reference asset and its tethered counterpart.
The backing of aUSDT with XAUT means that the asset is secured by reserves of actual gold stored in Switzerland. The smart contracts of Alloy by Tether are currently operational on the Ethereum (ETH) blockchain, enabling the creation of aUSDT using Tether Gold as collateral.
Paolo Ardoino, the CEO of Tether, commented on the innovative nature of this solution, highlighting its potential impact on the market. He also mentioned plans to integrate this technology into their upcoming digital asset tokenization platform.
This announcement follows recent data from Kaiko Analytics suggesting that Tether’s dominance in the stablecoin market is facing increasing competition. Stay informed by subscribing to receive email alerts directly in your inbox, and follow us on various social media platforms.
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