The issuer of USDT, Tether, has introduced the aUSDT token with collateral in the form of Tether Gold (XAUT) in the line of "linked assets" of Alloy.
According to the press release, aUSDT aims to rethink stability in the digital economy by combining the advantages of a stable unit of account with the safety and reliability of gold.
Alloy introduces a new category of "linked" digital tokens. They are designed to track the price of benchmark assets using stabilization strategies such as oversupply of liquid assets and secondary market liquidity pools.
This approach maintains a constant cost and stability of the link between the reference asset and its associated counterpart, the company noted.
aUSDT is designed to track the value of $1. The token is backed by Tether Gold (XAUT), a real physical metal in vaults in Switzerland.
Users can issue aUSDT using XAUT as collateral.
"This is a very useful and innovative combination for users who want to participate in digital transactions, payments and money transfers with a currency that seems as familiar as the US dollar, without having to sell their XAUT," the company explained.
Alloy by Tether smart contracts are deployed on the main Ethereum network. They provide transparency by tracking all collateral and issued tokens, using price oracles to continuously evaluate the Mint to Value ratio (MTV).
According to CoinGecko, XAUT's capitalization is $571.6 billion. According to this indicator, stablecoin is ahead of PAX Gold (PAXG) competitor Paxos ($428.4 billion).
The open Alloy platform allows you to create various linked assets with broader collateral mechanisms, including income-generating products.
The technology represents a modern approach to money management. It may interest institutions by offering a secure digital token backed by gold with the ability to add to portfolios.
Moon Gold NA and Moon Gold El Salvador, which are members of the Tether Group and authorized by CNAD of El Salvador, manage and issue.
"We plan to use this innovative technology [Alloy] on our new digital asset tokenization platform," said CEO Paolo Ardoino.
Recall that in June, the head of Tether announced that the USDT issuer would allocate over $1 billion for distribution to startups from "hundreds of venture proposals."
Then Ardoino re-announced plans to launch a platform later this year where companies will be able to issue bonds and shares in the form of digital tokens, and central banks will be able to offer CBDC.
In April, Tether announced the reorganization of the structure into four divisions in order to expand into other areas besides stablecoins.