Crypto’s leading stablecoin issuer Tether has launched a new stable backed by gold, aUSDT!
What’s the scoop?
- Overcollateralized: Holders of Tether’s tokenized gold product (XAUT), which has a market capitalization of $570M, can mint aUSDT stablecoins against their deposits through Alloy at up to a 75% loan-to-value ratio, enabling them to raise cash without selling their gold holdings.
- Tokenization Push: Tether CEO Paolo Ardoino stated that Alloy will be used to create “collateralized synthetic digital assets” and is a component of the firm’s tokenization platform, which is slated launch later this year and set to offer yield-bearing instruments.
Bankless Take:
Although tokenized gold has not yet been adopted as a collateral asset onchain, the presence of a new Tether-issued overcollateralized stablecoin could certainly excite borrowing activity. For Tether, the launch of a new minting model in conjunction with its foray into tokenization could allow the stablecoin issuer to increase market share.