Crypto stablecoin giant Tether introduces new synthetic dollar backed by gold
- Tether Gold, backed by physical gold stored in Switzerland, highlights the company’s ambitions to expand beyond its USDT stablecoin
Tether Holdings, issuer of the largest stablecoin in the cryptocurrency market, has created a new synthetic dollar that is backed by gold, the company announced Monday.
The token was created on the company’s new Alloy by Tether platform and will trade as aUSDT via smart contracts on the Ethereum Mainnet blockchain, where users can mint it through over-collateralisation by depositing another Tether token that tracks the value of gold.
The new offering highlights Tether’s ambitions to expand beyond its USDT stablecoin, a token with a market capitalisation of US$112.5 billion that tracks the value of the US dollar and is backed by reserves of US Treasury bills and other securities and investments.
Alloy by Tether was developed by Moon Gold and Moon Gold El Salvador, both of which are members of the Tether Group. Alloy by Tether was designed to be an open platform that will allow for the creation of other tethered assets, potentially including yield-bearing products, according to to the company.
“Alloy by Tether introduces a novel category of digital assets known as tethered assets, designed to track the price of reference assets through stabilisation strategies like over-collateralisation with liquid assets and secondary market liquidity pools,” the company wrote in a press release.
