Tether Launches Alloy: A New Asset Backed by Tether Gold
Tether, a leading stablecoin issuer, has introduced Alloy by Tether, a new token pegged to Tether Gold (XAUT) to bring stability to the digital economy. This innovative token merges the stability of a fiat-backed asset with the security and reliability of gold.
Tether CEO’s Insights on Tethered Assets with Alloy
The CEO of Tether, Paolo Ardoino, is excited about the launch of Alloy. He emphasized that while the stabilization mechanism differs from traditional options like USDT, Alloy signifies a significant milestone. Ardoino mentioned that Alloy is an open platform for creating collateralized synthetic digital assets and will soon be part of Tether’s new digital assets tokenization platform.
- Alloy offers the creation of various tethered assets with diverse backing mechanisms, potentially including yield-bearing products.
- Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V. will manage the issuance and operation of Alloy by Tether to cater to different customer segments and regulatory requirements.
RWA Tokenization Momentum with Commodity-Backed Tokens
aUSDT is the initial offering from Alloy by Tether, designed to mirror the value of the US dollar. Notably, aUSDT is over-collateralized by XAUT, backed by physical gold stored in Switzerland, providing stability akin to the US dollar but with the intrinsic value of gold.
- Users can create aUSDT tokens using XAUT as collateral, enabling digital transactions, payments, and remittances with the familiarity of the US dollar without selling their XAUT.
- Alloy by Tether’s smart contracts currently operate on the Ethereum Mainnet, where users can mint aUSDT by depositing XAUT through Ethereum-compatible smart contracts.
Growth in Commodity-Backed Tokens and Real-World Asset Tokenization
The rise of real-world asset tokenization is evident in CoinGecko’s RWA Report 2024, showcasing that commodity-backed tokens have reached $1.1 billion in market capitalization, with gold being the most popular commodity.
- Tokenized precious metals like XAUT and PAX Gold (PAXG) constitute 83% of the market cap of commodity-backed tokens, backed by physical gold to provide a dependable store of value.
- While commodity-backed tokens currently represent a small portion of the market cap of fiat-backed stablecoins, the potential for growth in this sector is substantial.
Hot Take: Tether’s Alloy and the Future of Real-World Asset Tokenization
Tether’s recent launch of Alloy by Tether represents a groundbreaking development in the realm of real-world asset tokenization, bridging the gap between fiat-backed stability and the intrinsic value of physical assets like gold. With the introduction of aUSDT and the expansion of tethered assets backed by Tether Gold, Tether is strategically positioning itself to capitalize on the growing market demand for real-world asset tokenization. Stay tuned for more updates on the evolution of Tether’s Alloy and its impact on the cryptocurrency landscape.
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