NEW YORK, Monday, June 24, 2024 – Tether, the issuer of the world’s largest stablecoin, USDT, announced the launch of a new digital currency on Monday. This new stablecoin, called Alloy (aUSDT), is pegged to the U.S. dollar and backed by Tether Gold (XAUt), a token representing ownership of physical gold.1
The launch marks Tether’s latest venture into the growing field of tokenization, which involves converting real-world assets like gold, real estate, or even intellectual property into digital tokens on a blockchain. This process streamlines transactions, improves asset divisibility, and potentially increases access for new investors.
Traditionally, stablecoins have been backed by reserves of actual U.S. dollars, aiming to maintain a one-to-one peg with the dollar. aUSDT, however, is a “synthetic dollar,” meaning its value is not directly tied to cash reserves but rather to the underlying gold holdings. Tether claims aUSDT will be “overcollateralized” by XAUt, providing additional security for investors in case of gold price fluctuations.
This move comes as Tether seeks to expand its services beyond USDT, the dominant stablecoin in the cryptocurrency market.
The company has also invested in bitcoin mining, payment processing, and artificial intelligence in recent months, suggesting a broader strategy to become a major player in the evolving digital asset landscape.
- benzinga.com: https://www.benzinga.com/markets/cryptocurrency/24/06/39371083/usdt-issuer-tether-launches-new-gold-backed-usd-pegged-stablecoin-in-latest-tokenization-p[↩]
