Tether, the company behind the $110 billion stablecoin USDT, unveiled on Monday its Alloy project and a new token creation platform on the Ethereum network.
This platform allows users to create tokens backed by Tether’s tokenized gold (XAUT).
Alloy Platform and New aUSDT Stablecoin
The new Alloy platform allows for the creation of collateralized synthetic digital assets. According to Paolo Ardoino, CEO of Tether, this platform will soon become part of Tether’s new digital asset tokenization platform, set to launch later this year. Tether also stated in a press release that the platform could potentially offer yield-bearing products in the future.
The first asset available on the platform is aUSDt, a synthetic dollar over-collateralized by XAUT (Tether Gold). Investors can mint aUSDt by depositing Tether’s XAUT as collateral. XAUT, which has a market capitalization of $570 million, is backed by physical gold stored in Switzerland, according to Tether.
Advantages of the aUSDt Stablecoin
The aUSDt stablecoin is designed for users who want to use cryptocurrencies for payments and remittances without selling their gold-backed tokens. The position must be over-collateralized, meaning the amount of new tokens users can create is limited to 75% of the collateral’s value.
The issuance of the assets will be managed by Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., which are regulated by El Salvador’s National Commission of Digital Assets (CNAD). This new offering from Tether follows its efforts to expand its services beyond issuing USDT, the largest stablecoin in terms of market value and a cornerstone of the digital asset market.
