The post USDT Issuer Tether Launches New Gold-Backed Stablecoin aUSD₮ appeared on BitcoinEthereumNews.com.

Tether, the largest stablecoin issuer, has officially unveiled Alloy by Tether, a pioneering asset class secured by Tether Gold.  Tether disclosed this development in an official press statement today. It noted that Alloy by Tether seeks to elevate stability within the digital economy by merging the consistency of a stable currency with the dependability of gold. Alloy by Tether Notably, Alloy by Tether marks the start of a new class of digital assets known as tethered assets. These assets are engineered to mirror the value of reference assets using stabilization mechanisms such as over-collateralization with liquid assets and the use of secondary market liquidity pools. According to the report, the approach ensures a steady value correlation between the reference asset and its tethered equivalent. At the launch period, the inaugural token in the Alloy by Tether series is aUSD₮, a digital token pegged to the USD dollar. Tether claims aUSD₮ stands out due to its over-collateralization with Tether Gold (XAU₮), backed by tangible gold reserves in Switzerland. How to Get aUSD₮  Notably, users can generate aUSD₮ tokens by using XAU₮ as collateral. Per the report, the combination is particularly beneficial for users seeking to participate in digital transactions such as payments and remittances with a currency as familiar as the USD without liquidating their XAU₮ holdings. At present, Alloy by Tether’s smart contracts are operational on the Ethereum Mainnet. Accordingly, users can generate aUSD₮ by depositing XAU₮ as collateral through a process supervised by Ethereum smart contracts.  Tether stressed that  aUSD₮ smart contracts provide transparency by continuously monitoring collateral and minted tokens with the help of Price Oracles to maintain an optimal mint-to-value ratio. Paolo Ardoino, CEO of Tether, conveyed enthusiasm about the launch of Alloy by Tether, stressing that it represents a significant milestone. He noted that aUSD₮ stabilization…

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Filed under: News - @ June 17, 2024 11:26 pm