- Tether launches Alloy, gold-backed stablecoin on Ethereum.
- Alloy’s aUSDT token collateralized by Tether’s gold reserves in Switzerland.
- Tether plans future expansion of synthetic assets through Alloy platform.
The company Tether, responsible for the widely used stablecoin USDT, has introduced Alloy, an innovative system on the Ethereum
Additionally, Alloy has introduced a novel class of assets linked to another asset. The initiative begins with aUSDT, which serves as collateral for Tether’s XAUT—a token corresponding to actual gold held in vaults in Switzerland. This development represents a notable extension beyond the usual stablecoins, with the goal of merging the stability of being pegged to the U.S. dollar with the intrinsic value of gold.
A US Dollar Equivalent Supported by Gold in Token Form
With its latest move, Tether positions itself as a leader in digital asset innovation, employing blockchain technology to forge aUSDT. The distinguishing feature of aUSDT is its collateralization approach. Instead of being supported by traditional fiat currency, it is secured by Tether’s own gold in token form, referred to as XAUT. The XAUT, estimated at around $573 million, is underpinned by tangible gold reserves in Switzerland.
While Tether Gold (XAUT) has a relatively smaller market capitalization than Tether’s USDT, which is over $112 billion, the incorporation of gold is attractive to investors looking for a hedge against the fluctuating cryptocurrency market. The creation of the new aUSDT token was facilitated by the collaboration with Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., both of which are entities within the Tether Group.
The introduction of Alloy also indicates Tether’s wider plan to expand its product range, with intentions to roll out additional synthetic assets in the future. Furthermore, the emergence of platforms such as Alloy, especially in a time of increasing regulatory focus on the cryptocurrency industry, could potentially transform international attitudes and regulations concerning digital assets.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
