- Tether introduces the aUSDT, a synthetic dollar backed by gold, to the Ethereum Mainnet.
- Tether’s product line extends beyond its USDT stablecoin with aUSDT.
On the Ethereum Mainnet, the gold-backed Tether synthetic dollar currency was introduced. It meets the needs of consumers who want to transact without having to sell digital assets backed by gold, and it broadens Tether’s product line beyond its stablecoin, USDT.
Recently, Tether announced the introduction of a new digital currency backed by gold. The token is traded on the Ethereum Mainnet network and represents aUSDT. By over-collateralizing deposits of another Tether token after the value of gold, users can manufacture the token.
Tether Synthetic Dollar: An Innovative Token Backed by Gold
With a market valuation of $112.5 billion, Tether’s flagship USDT stablecoin is correlated to the US dollar. This offering highlights the company’s goal to diversify. The USDT stablecoin’s value is fixed and entirely supported by reserves held in the form of investments and U.S. Treasury notes.
The Tether Group companies Moon Gold NA S.A. de C.V. and Moon Gold El Salvador S.A. de C.V. collaborated to establish Alloy by Tether, the platform that served as the foundation for the token’s development. The platform is intended to serve as an open platform for the development of further connected assets, such as products with yield.
Tether called Alloy by Tether, which introduced tethered assets meant to follow reference assets’ prices, a revolutionary entry into the digital asset market. Strategies like secondary market liquidity pools and over-collateralization with liquid assets are used to achieve this.
Tether’s Achievements Despite Regulatory Review
Tether Gold has a market valuation of over $573 million and is backed by real gold that is kept in storage in Switzerland. The new aUSDT currency serves users who want to send remittances, transact, and make payments with a currency that resembles the US dollar without having to liquidate their digital assets backed by gold.
With the present high interest rate environment, Tether’s USDT stablecoin has generated considerable revenue. In the first quarter, the company even managed to turn a $4.5 billion profit.
Tether’s USDT has been able to match the dollar exactly without any significant depegs in recent years, despite regulators’ scrutiny of the type of assets and liquidity supporting stablecoins like USDT.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
