As a seasoned crypto investor with a keen interest in stablecoins and their potential to revolutionize the digital economy, I’m excited about Tether’s latest announcement. The launch of a new asset class backed by Tether Gold, or Alloy, is an innovative solution that combines the benefits of a stable unit of account with the security of gold.
Tether, the stablecoin issuer, has unveiled plans to introduce a new asset class backed by gold, aiming to boost the consistency and stability of its offerings.
Tether is broadening its selection of stablecoins with a fresh asset class intended to enhance stability in the digital economy. By merging the benefits of a steady unit of account with the safety of gold, Tether introduced Alloy on June 17 as their new token. Backed by Tether Gold (XAU₮), this token represents ownership of real physical gold.
The “tethered asset” created by Tether’s affiliates Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., is said to follow the value of reference assets through techniques such as over-collateralization with readily available assets and establishing secondary market liquidity reserves.
As an analyst, I’m thrilled about the novelty of this stabilization mechanism, which sets it apart from conventional methods such as those tied to the US dollar. This groundbreaking development represents a significant leap forward, and I can’t wait to observe how it interacts with the broader market.
Tether CEO Paolo Ardoino
The first token in the Alloy lineup, aUSD₮, is designed to track the value of one U.S. dollar and is over-collateralized by Tether Gold, which is backed by “real physical gold stored in Switzerland,” Tether says. As of press time, there are five addresses holding aUSD₮ already, according to data from Tether.
Users have the ability to generate USDtoigan tokens through utilization of Tether Gold as collateral. This feature allows for seamless digital transactions, payments, and remittances, reflecting the value of the U.S. dollar without requiring the sale of Tether Gold holdings. The issuer clarifies that this process is overseen by Ethereum-compatible smart contracts.
As an analyst, I would express it this way: In early 2020, I observed Tether introducing its latest innovation in the field of tokenized assets – the aUSD₮ stablecoin. Previously, Tether had introduced XAU₮, a stablecoin backed by physical gold. This offering allowed investors to hold digital gold, represented by each XAU₮ token, which equates to ownership of one troy ounce of gold stored in a Swiss vault.
Read More
Sorry. No data so far.
2024-06-17 15:48