Tether Launches Gold-Backed Token in Switzerland
Tether is set to introduce a new composite asset portfolio, starting with a gold-backed token named aUSDT, secured by physical gold stored in Switzerland.
Tether Launches Gold-Backed Token in Switzerland. Photo: Tether
Tether, the world's largest issuer of stablecoins, has introduced a new category of cryptocurrencies called "tethered assets."
According to an announcement on June 17, the first token to debut is "Alloy by Tether," abbreviated as aUSDT, on the Ethereum network. This token is backed by physical gold stored in Switzerland.
Paolo Ardoino, Tether's Chief Executive Officer, shared on X:
"Alloy by Tether is an open platform enabling users to create collateralized digital assets and will soon be part of Tether's new crypto asset platform, expected to launch later this year."
Tether describes aUSDT as a cryptocurrency "designed to track the value of 1 US dollar" but overcollateralized by Tether Gold (XAUT), emphasizing its backing by physical gold. Users can mint aUSDT by using XAUT as collateral, the company added.
XAUT is another Tether product, with a market capitalization of $573 million USD, though not as widely used as the company's flagship stablecoin USDT, which boasts a market cap exceeding $100 billion USD.
Price fluctuations of USDT in the past 24 hours, screenshot from CoinMarketCap at 09:50 AM on 18/06/2024
Tether noted that aUSDT was developed with support from Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V., members of the "Tether Group."
It's evident that Tether is expanding its services beyond the shadow of its USDT issuer status, which remains a cornerstone of the crypto market. The company recently invested in Bitcoin mining, payment processing, and artificial intelligence (AI) through cloud computing.
According to disclosures, Tether plans to invest over $1 billion USD across various ventures in the coming year, amid tight scrutiny from US authorities.