Tether Launched a New Gold-Backed Stablecoin – What is aUSDT?

June 18, 2024

Tether gold-backed stablecoin

The crypto world is arguably experiencing one of its best periods, with tremendous coin growth, new blockchain advancements, and unprecedented innovations.

Tether, one of the leading crypto ecosystem developers and the company behind the most robust stablecoin network, USDT, has introduced a new gold-backed stablecoin, aUSDT. The new “synthetic dollar” will be fixed to the USD and mintable on the Alloy platform.

This technology is expected to improve connections between centralized and decentralized economies, offering real-life use cases and trading opportunities using DeFi currencies. Let’s explain what Tether’s new aUSDT is all about and how it works.

Introducing Tether’s New Stablecoin

Tether had a great start to the year, reporting a record $4.5 billion in profits for the first quarter of 2024, much of which is derived from gold and the massive growth of Bitcoin.

On June 17th, the company announced a new stablecoin backed by gold, aUSDT, which will be pegged to the USD and backed by Tether’s gold asset, XAUt. This way, Alloy will act like a standard US Dollar while being backed by decentralized gold-like currencies, creating a synthetic dollar.

Alloy (aUSDT) will be minted on the Ethereum blockchain, utilizing the network’s smart contract capabilities that power interoperability and security.

Paolo Ardoino, Tether’s CEO, said that the new aUSDT was created by Moon Gold and Moon Gold El Salvador, the company’s subsidiaries regulated under El Salvador’s National Commission of Digital Assets (CNAD). The CEO stated that the new coin will be part of a tokenization platform that offers multi-asset minting on the Alloy platform in the future.

How Tether’s Gold-Backed Stablecoin Works?

Tether’s new stablecoin will be over-collateralised by XAUt, Tether’s gold currency, which enables users to own real-life gold that is physically stored and managed in Switzerland.

Over-collateralizing means that the gold-backed crypto has enough buffer to absorb market fluctuations without losing its peg or deviating massively from the 1:1 USD pegging mechanism. Users can mint the aUSDT by depositing xAUT, which is facilitated by blockchain oracles and smart contracts.

Tether’s Alloy Use Cases

Crypto analysts commented on this introduction as the first top-notch synthetic dollar creation. Despite the many attempts to create a DeFi-based currency mimicking the USD, this is the first venture by a sophisticated decentralized ecosystem like Tether.

The creation of aUSDT aims to facilitate a more structured stablecoin system that can be compared to the fiat dollar. Businesses, brokerage firms, online gambling sites, and e-commerce can utilize aUSDT’s capabilities to streamline their payments.

Moreover, the xAUT’s role as gold collateral can potentially stimulate investment in gold commodities, whether in traditional financial markets or as decentralized tokens.

Conclusion

Tether introduces aUSDT, a gold-backed stablecoin pegged to the USD in an unconventional way. The Alloy token can be minted on the Ethereum network, utilising its smart contracts and technologies to instil interoperability and safety.

This introduction is expected to offer a more structured infrastructure for online businesses and organizations willing to transact in pegged cryptocurrencies that use Tether’s established ecosystem.

Subscribe Our Newsletter

Yellen: Crypto Regulation Should be Based on Risk
Yellen: Crypto Regulation Should be Based on Risk

In a conference on regulating cryptocurrencies, Treasury Secretary Janet Yellen stated that regulation should be focused on risk rather than innovation, balancing the benefits digital assets may bring to our payment system with the hazards they provide.

Crypto
Stock Market Predictions 2024: Undervalued Dividend-Growth Stocks list

Milena

Stock Market Predictions 2024:  List of Dividend-Growth Stocks That Are Undervalued

Dividend stocks, with regular payouts and the potential for financial gains and optimistic stock market p

Stock Market Forecast
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Sasha

How Does Tokenization Work in Blockchain?
Blockchain tokenization is a powerful concept that allows for the representation of real-world assets on a digital ledger.

discover
Is Day Trading Gambling? Most Likely Yes

Alexander

Is Day Trading Gambling? Most Likely Yes

In the world of finance, day trading has gained popularity as an exciting and potentially lucrative activity. In the world of finance, day trading has gained popularity as an exciting and potentially lucrative activity.

Trading
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi

    Hazem

    Max Funded IUL Explained: Is It a Legitimate Financial Strategy?

    Understanding Max Funded IUL

    Alexander

    Tax Refund Timeline: When Will You Get Your Tax Return?

    how long does it take for tax refund

    Constantine

    Crypto Liquidity — What is it, and How to Measure It?

    What is Crypto Liquidity and How to Measure It?

    Constantine

    AI in Finance: A Game-Changing Trend Shaping the Industry

    AI in Finance

    Hazem

    5 Ways to Make Money with ChatGPT and Build Your Wealth

    Make Money with ChatGPT

    Constantine

    Top AI Companies to Invest in April 2025

    Top AI Companies to Invest in March 2025

    DeepSeek vs ChatGPT: Which AI Technology is Better For You?

    DeepSeek vs ChatGPT: Feature-by-Feature AI Tool Comparison

    Constantine

    Top Solana Meme Coins in 2025: Best Presales and Where to Buy

    Solana Meme Coins 2025

    Alexander

    How Renewable Energy Stocks Can Supercharge Your Portfolio

    How Renewable Energy Stocks Supercharge Your Portfolio

    SEC Crypto Regulations: What Financial Advisors Need to Know

    SEC Crypto Regulations: Insights for Financial Advisors

    Hazem

    The Cup and Handle Pattern – How Trade Using This Bullish Indicator?

    Cup and Handle Pattern – How to Predict Price Breakouts?

    Hazem

    Year-Over-Year (YoY): What It Means? How It’s Used in Finance?

    Year-Over-Year (YoY): How to Calculate Business Performance?

    Constantine

    What is WAGMI and NGMI? Understanding Crypto Slangs

    WAGMI vs. NGMI

    Alexander

    Litecoin Mining Guide: How to Get Started in 2025?

    Litecoin Mining Guide: How to Get Started in 2025?

    Constantine

    What is Thruster (THRUST): An Advanced AMM for the Blast Ecosystem

    Thruster (THRUST): How Does it Revolutionise DeFi?

    Constantine

    How Does Polymarket Work? Detailed Guide

    How Does Polymarket Work? Comprehensive Guide

    Constantine

    Coinbase vs. Сoinbase Pro: Which Platform is Right for You?

    Coinbase vs. Coinbase Pro
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.