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  • Writer's pictureBrandon Zemp

Tether's NEW Stablecoin Backed by Gold through Tokenization

Tether's NEW Stablecoin Backed by Gold through Tokenization

On Monday, Tether, the company responsible for the $110 billion stablecoin (USDT), introduced a new token minting platform called Alloy on the Ethereum network. This platform enables users to generate tokens backed by Tether's tokenized gold (XAUT).

"Alloy by Tether is an open platform that allows to create collateralized synthetic digital assets and will soon be part of the new Tether digital assets tokenization platform, launching later this year, Paolo Ardoino, CEO of Tether," said in an X post. Tether also announced that the platform may potentially offer yield-bearing products in the future as well.

On the platform, the initial asset offered is aUSDT, which is tethered to the value of the U.S. dollar. Investors have the option to create aUSDT by providing Tether's XAUT as security. XAUT has a market capitalization of $570 million and is supported by physical gold held in Switzerland, as stated by Tether.

Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V. will be responsible for managing the asset issuance, which is overseen by El Salvador's National Commission of Digital Assets (CNAD). Tether's latest initiative comes as part of its broader strategy to diversify its offerings beyond USDT, the leading stablecoin in terms of market capitalization and a key player in the digital asset sector. The company has recently ventured into bitcoin (BTC) mining, payment processing, and artificial intelligence (AI) utilizing cloud computing resources.

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