Tether Unveils Gold-Backed Stablecoin Alloy (aUSDT), Anchored to USD
Summary:
Tether is launching a unique gold-backed stablecoin, Alloy (aUSDT), pegged to the US dollar, marking the first tethered asset issued by the company. The coin can be minted via the new Alloy by Tether platform and is over-collateralized by Tether's gold-pegged token XAUT. It provides a synthetic dollar, not directly supported by USD, offering long-term investors the benefit of maintaining gold exposure alongside the acquisition of a dollar-related tethered asset. Other tethered assets will be created, and the synthetic dollar can be minted by depositing XUSDT through a smart contract. The initiative is led by Tether subsidiaries Moon Gold and Moon Gold El Salvador, and Alloy by Tether will be incorporated into an upcoming real-world asset tokenization platform.
In a unique venture, Tether is launching a fresh stablecoin backed by gold and anchored to the US dollar, marking it as the first tethered asset issued by the company. Named Alloy (aUSDT), this innovative coin can be minted via the all-new Alloy by Tether platform. Contrary to direct backing by the US dollar, Alloy has chosen a novel approach by over-collateralizing their offering with Tether's gold-based token XAUT - a token which implies ownership of tangible gold. In essence, Alloy's new coin is a synthetic dollar exhibiting the dynamics and value of USD, but isn't directly supported by it. Alloy elaborated in an X post that tethered ssets are akin to digital assets that strive to correspond with the reference price of another asset through diverse stabilization techniques.
The Alloy by Tether platform, they state, gives long-term investors the benefit of maintaining gold exposure simultaneously with the acquisition of a dollar-related Tethered asset for regular economic transactions and payments. Indicating future plans, the company also revealed the possibility of creating other tethered assets which could encompass yield-bearing instruments.
The mechanism to mint this synthetic dollar involves depositing XUSDT through a smart contract and price oracles. Subsequently, users can carry out transactions with aUSDT while still retaining their gold-secured Tether asset.
This new initiative has been spearheaded by Tether subsidiaries Moon Gold and Moon Gold El Salvador. Alloy by Tether is anticipated to be incorporated into a platform for real-world asset tokenization set to be unveiled later this year, as per Tether’s CEO Paolo Ardoino.
Nevertheless, Tether did not pioneer the concept of synthetic dollars. Bitcoin premiered this idea with the advent of Stablesats, a synthetic dollar on the Lightning Network launched by Galoy in 2022. Synthetic dollars became more mainstream when startup Ethena Labs launched its USD-pegged, Ethereum-backed USDe in February, although it was greeted with some skepticism. However, aUSDT stands out favorably against USDe and other stablecoins due to Tether's ample liquidity and more strategic and risk-averse approach to central control.
A bonus scheme is also on offer to Tether (USDT) holders in which a bonus is offered at a 2:1 ratio with 10 million aUSDT earmarked for this purpose.
Published At
6/17/2024 9:30:00 PM
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