Tether launches innovative asset token aUSD₮, which combines the stability of the US dollar and the safety of gold

Tether has officially launched a new digital asset, aUSD₮, through its Alloy platform, aiming to combine the stability of the U.S. dollar with the lasting value of gold, bringing an innovative stablecoin option to the market.

The aUSD₮ token is designed to track the value of one U.S. dollar, providing a stable unit of account while being backed by physical gold stored in Switzerland.

Tether launches innovative Alloy platform and aUSD₮ token

According to reports, aUSD₮ is over-collateralized by Tether Gold (XAU₮), blending the stability of the U.S. dollar with the value-preserving properties of gold, aiming to become a stable unit of account that tracks the value of one U.S. dollar.

In aUSD₮’s design, over-collateralization is a core feature. This mechanism acts as a safety net, absorbing potential fluctuations in the value of the collateral assets, thus ensuring stability and reliability. This means that the value of the gold backing aUSD₮ exceeds the value of the tokens in circulation, forming a safety cushion to absorb fluctuations in the value of gold, thereby ensuring the stability and reliability of the token value.

Meanwhile, aUSD₮ is minted and managed via Ethereum-compatible smart contracts. These smart contracts are responsible for tracking the flow of collateral and tokens, and monitoring the Mint Value (MTV) ratio in real time through price oracles, ensuring the transparency and security of the entire system.

Because aUSD₮ combines the broad application of the U.S. dollar in payments, transactions, settlements and savings, with the advantages of gold’s scarcity, low volatility and purchasing power preservation. This makes aUSD₮ an attractive stable asset suitable for a variety of economic activities and wealth storage.

In summary, Tether’s Alloy platform is an open ecosystem that not only supports aUSD₮, but also allows the creation of multiple Tether assets with different support mechanisms, and may even include future yield products. This design enables Alloy to adapt to the needs of different customers and comply with diverse regulatory requirements.

Tether CEO Paolo Ardoino emphasized that Tether’s Alloy is an open platform that allows (users) to create collateralized synthetic digital assets and will soon become part of the new Tether digital asset tokenization platform, which will be launched later this year time to launch.

in conclusion The launch of aUSD₮ represents an important innovation in the field of digital assets. It not only provides users with a new digital currency that combines the stability of the US dollar and the security of gold, but also provides a modern solution for daily use and asset management. Through the Alloy platform, Tether hopes to redefine the stability of the digital economy and promote the widespread application and development of digital assets.

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