Moon

Gold

USDe

Tether is introducing a gold-backed stablecoin pegged to the U.S. dollar. It is the first tethered asset, the issuer declared. The new coin is called Alloy (aUSDT) and is mintable on the new Alloy by Tether platform.
According to the company, Alloy will be overcollateralized by Tether Gold (XAUt) — a token that provides ownership of physical gold — but pegged to the U.S. dollar. By definition, the new token is a synthetic dollar, which is designed to mimic the value and functionality of the U.S. dollar without being directly backed by it. 
 Alloy <a href="https://x.com/Alloy_tether/status/1802676445619098065" target="_blank" rel="noopener nofollow">explained</a> in an X post that tethered assets are “digital assets that aim to track the reference price of another asset through different stabilisation mechanisms.” Further, it <a href="https://x.com/Alloy_tether/status/1802676451117846699" target="_blank" rel="noopener nofollow">said</a>:
<blockquote data-ct-non-breakable="true">
 “Alloy by Tether provides long-term holders the opportunity to maintain exposure to gold, while in parallel obtaining a dollar-referenced Tethered Asset for payments and day-to-day economy.”
</blockquote>
<h2 data-ct-non-breakable="true" id="stability-and-flexibility-through-ausdt">Stability and flexibility through aUSDT</h2>
In the same thread, the organization said other tethered assets, including yield-bearing products, could be created on the platform.&nbsp;
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/5f49b854-7e06-45d5-ac85-33fb6f325d15.png">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/paoloardoino/status/1802693087644320087" target="_blank" rel="noopener nofollow">Paolo Ardoino</a>
 </figcaption>
</figure>
The synthetic dollar can be minted by depositing XUSDT through a smart contract and price oracles. Thus, users can <a href="https://tether.io/news/tether-announces-launch-of-alloy-by-tether-a-new-digital-asset-backed-by-tether-gold/" target="_blank" rel="noopener nofollow">make</a> transactions with aUSDT while retaining their gold-backed Tether asset.
Related: <a href="https://cointelegraph.com/news/tether-record-4-52-billion-profit-q1-2024">Tether nets record $4.5B profit in Q1 2024 — majority from Bitcoin and gold</a>
AUSDT was developed by Tether subsidiaries Moon Gold and Moon Gold El Salvador. Alloy by Tether will become part of a real-world asset tokenization platform launching later this year, said Tether CEO Paolo Ardoino. 
<h3 id="the-first-tethered-asset-is-not-the-first-synthetic-dollar">The first tethered asset is not the first synthetic dollar</h3>
Tether’s aUSDT is not the first synthetic dollar. In August 2022, Galoy introduced a Bitcoin-based <a href="https://cointelegraph.com/news/dollars-on-the-lightning-network-a-boon-for-emerging-markets">synthetic dollar called Stablesats</a> on the Lightning Network.
However, the synthetic dollar as a popular asset form came to prominence when startup Ethena Labs <a href="https://cointelegraph.com/news/ethena-labs-secures-14-million-funding-synthetic-dollar">introduced its Ether-backed</a>, dollar-pegged USDe in February. The launch was <a href="https://cointelegraph.com/news/usde-yield-terra-luna-reaction-ethena-labs">met with some skepticism</a>. Asymmetry <a href="https://cointelegraph.com/news/asymmetry-ampleforth-launch-afusd-rival-ethena-synthetic-dollar">provided a variation</a> on the concept with an algorithmically balanced synthetic dollar in June.
One analyst has <a href="https://x.com/0xfoobar/status/1802691495016747264" target="_blank" rel="noopener nofollow">compared</a> aUSDT favorably to USDe and other stablecoins due to Tether’s high liquidity and “smarter decisionmaking and less principal-agent risk” thanks to its centralized control.
Tether has sweetened the deal on the new asset by offering USDT (<a href="https://cointelegraph.com/tether-price-index">USDT</a>) holders a bonus at a 2:1 ratio and has set aside 10 million aUSDT for the purpose.
Magazine: <a href="https://cointelegraph.com/magazine/real-risks-ethena-stablecoin-model-not-ones-you-think/">The real risks to Ethena’s stablecoin model (are not the ones you think)</a>

Tether launches gold-backed, US dollar stablecoin Alloy

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Cointelegraph

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