Tether launched a gold-backed, US dollar stable coin
Tether is introducing a stablecoin backed by gold against the US dollar. The first is a foreclosed property, the issuer said. The new coin is called Alloy (aUSDT) and the new alloy can be traded on the Tether platform.
According to the company, Alloy will be traded in Tether Gold (XAUt) – a token that offers ownership of physical gold – but will be pegged to the US dollar. By definition, the new token is a synthetic dollar designed to mimic the value and functionality of the US dollar without being directly backed.
Alloy explained in X's post that pegged assets are “digital assets that aim to track the reference value of another asset through various stabilization mechanisms.” He also said:
“Alloy by Tether gives long-term holders the opportunity to maintain exposure to gold, while simultaneously gaining access to a dollar-denominated connected asset for payments and the everyday economy.”
Stability and flexibility through aUSDT
In the same thread, the company's other related assets, including products, can be created on the platform.
The artificial dollar XUSDT can be obtained by placing a smart contract and price oracle. Therefore, users can make transactions with aUSDT as soon as they hold their gold-backed Tether assets.
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AUSDT was developed by Tether subsidiary Moon Gold and Moon Gold El Salvador. Alloy by Tether will be part of a real-world asset token platform that will launch later this year, Tether CEO Paolo Arduino said.
The first linked asset is not the first synthetic dollar.
Tether's aUSDT is not the first synthetic dollar. In the year In August 2022, Galway introduced Stablesats, a Bitcoin-based synthetic dollar on the Lightning Network.
However, Aetna Labs, a startup that has seen the artificial dollar emerge as a popular asset form, introduced an Ether-backed, dollar-pegged USDe in February. The launch has raised some doubts. Asymmetry introduced a variation of the concept in June with an algorithmically balanced synthetic dollar.
One analyst compared aUSDT to USDe and other stablecoins due to Tether's high liquidity and “smart decision-making and low principal-agent risk.”
Tether sweetened the deal on the new asset by offering a 2:1 ratio bonus to USDT holders and earmarked 10 million aUSDT for the purpose.
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