Tether has launched a new stablecoin backed by gold and pegged to the US dollar, marking its first tethered asset. This new coin is named Alloy (aUSDT) and can be created on the recently introduced platform, Alloy by Tether. The company states that Alloy is overcollateralized using Tether’s gold-pegged token, XAUT, which stands for ownership of physical gold. Despite being overcollateralized by gold, Alloy is pegged to the value of the US dollar. Essentially, this positions the new token as a synthetic dollar, offering the stability and functionality of the USD without direct backing.
In a recent communication, Alloy elaborated that tethered assets are digital currencies designed to mirror the price of another asset using various stabilization methods. This feature allows long-term holders to keep their exposure to gold while simultaneously enjoying the benefits of a dollar-referenced asset for daily transactions and payments, making it highly versatile and practical for various economic activities.
Within the same communication, the organization hinted at the possibility of creating other tethered assets on the platform, including products that generate yield. The synthetic dollar, aUSDT, can be minted by depositing XUSDT through smart contracts and price oracles. This setup allows users to make transactions with aUSDT while still holding their gold-backed Tether asset, providing both flexibility and stability in usage.
aUSDT is the brainchild of Tether subsidiaries Moon Gold and Moon Gold El Salvador. According to Tether’s CEO, Paolo Ardoino, Alloy by Tether will be integrated into a real-world asset tokenization platform that is set to launch later this year. This move is expected to further Tether’s ambitions in revolutionizing the digital asset space.
AUSDT is not the pioneering synthetic dollar. Before this, a Bitcoin-based synthetic dollar named Stablesats was launched on the Lightning Network by Galoy in August 2022. The concept of the synthetic dollar gained more traction when Ethena Labs introduced USDe, an Ethereum-backed, USD-pegged synthetic dollar, in February. This launch received mixed reactions, with some skepticism surrounding its implementation.
Interestingly, another synthetic dollar variation was introduced by Asymmetry in June, featuring an algorithmically balanced approach. Despite these alternatives, one analyst has favorably compared aUSDT to USDe and other stablecoins, citing Tether’s high liquidity and more efficient decision-making process due to its centralized control, which significantly reduces principal-agent risk.
In an effort to boost the adoption of their new asset, Tether has added an incentive for its users. They are offering Tether (USDT) holders a bonus at a 2:1 ratio, setting aside 10 million aUSDT for this purpose. This strategic move is expected to attract more users to their platform and encourage the use of the new synthetic dollar.
The introduction of Alloy (aUSDT) signifies a significant step forward for Tether in the stablecoin market. It promises to combine the traditional safety and reliability of gold with the modern advantages of digital and synthetic currencies, potentially reshaping the landscape of digital payments and investments.
It sounds like Tether is trying to reinvent the wheel here. But do we really need this, or is it just another money-making scheme for them?
Tether always has some new gimmick. 🤡 This time it’s a gold-backed synthetic dollar? I’ll stick to more straightforward options, thanks. 🙌💵
Tethers move with aUSDT is setting a new standard in stablecoins. Absolutely fantastic!
The whole concept seems unnecessary. Pegged to the USD but backed by gold? Sounds like a setup for confusion and potential failure.
Here we go againanother confusing product from Tether. They should focus on making USDT more transparent instead of launching something new and shiny.
Tether has outdone itself with aUSDT! Combining gold security and USD value is simply genius
aUSDT seems like a reliable and practical solution for everyday transactions. Can’t wait to use it!
Gold-backed and USD-pegged? Alloy by Tether is a must-have in my portfolio
Overcomplicating digital currencies is not the way to gain trust. This Alloy business feels like a desperate attempt to stay relevant.
It feels like Tether is just throwing out new products to distract from their ongoing regulatory scrutiny. 🚧 This is one big distraction wrapped in gold foil. 🎁🙅♂️
aUSDT offers such a clever balance of stability and utility. A huge step forward for digital assets
I don’t see how this synthetic dollar offers any real benefits over existing stablecoins. Which problem is it solving? Just another layer of complexity.
Alloy by Tether is exactly what the digital currency market needed. Kudos to the team 👏🌟
Great to see Tether revolutionizing the digital payment space with Alloy. aUSDT is poised for success! 🚀✨
Excited to see aUSDT in action! Combining stability and flexibility is brilliant
Gold-backed and dollar-pegged? Now that’s what I call the best of both worlds! Great move by Tether! 🌍💸
I’m skeptical about anything new coming from Tether. They have too many question marks surrounding them, and this synthetic dollar just adds more confusion. 🚨❓
Yet another convoluted product from Tether. Why not focus on making sure your current offerings are solid and transparent first?
This is just getting ridiculous! Another synthetic dollar? Whats the point if its backed by gold but pegged to USD? Seems overly complicated for no good reason.
lol, why would I go for aUSDT when so many other stablecoins have already proven themselves? This just reeks of marketing noise. 📢💥
This is nothing but a marketing ploy. Overcollateralized with gold but still pegged to the USD? Why not simplify it for us, Tether? 🙄💠
Kudos to the Tether team! Alloy (aUSDT) is a brilliant concept for combining the best features of gold and USD
This aUSDT launch is groundbreaking! Great to see Tether pushing the boundaries 🚀🌍
I dont trust Tether one bit. Their transparency issues in the past make me question this whole Alloy thing. Overcollateralized or not, Im not buying it.
So basically, it’s a pseudo-dollar backed by gold, yet still tethered to USD? Sounds like a complicated gimmick to me. Why not just hold real USD or gold?
Loving the introduction of aUSDT, especially the incentive to grab more users! 2:1 bonus is sweet
The 2:1 bonus for USDT holders is a smart move. Tether always knows how to engage its community
Finally, a stablecoin that’s backed by gold and pegged to USD! This opens up so many possibilities. Way to go, Tether! 👏🏆