Tether Unveils aUSDT Gold-Backed Stablecoin Pegged to the Synthetic Dollar

In a massive move, the world's largest stablecoin issuer Tether unveiled its gold-backed stablecoin pegged to the synthetic dollar.

Stablecoin issuer Tether has announced the launch of a new gold-backed stablecoin pegged to a synthetic dollar. The stablecoin, called aUSDT, will be available for minting on Tether’s Alloy platform.

Users will be able to mint aUSDT by depositing a Tether token that tracks the value of gold, known as XAUt, into a smart contract on the Ethereum blockchain. The amount of XAUt required to mint 1 aUSDT will vary depending on the market price of gold.

Once minted, aUSDT will be available for trading on decentralized exchanges and other platforms that support Tether tokens. The stablecoin will also be used to settle payments and other transactions on the Tether network.

Tether’s new gold-backed stablecoin is the latest in a series of synthetic dollars that have been launched in recent months. In August 2022, Galoy introduced Stablesats, a Bitcoin-based synthetic dollar on the Lightning Network.

The synthetic dollar gained popularity when startup Ethena Labs launched its Ether-backed, dollar-pegged USDe in February, despite initial skepticism. Asymmetry followed in June with an algorithmically balanced synthetic dollar.

According to an analysis by an industry expert, aUSDT is likely to face competition from other stablecoins, including USDe, but it could benefit from Tether's high liquidity and centralized control, which might enable smarter decision-making and reduce principal-agent risk.

News source：https://www.kdj.com/cryptocurrencies-news/articles/tether-unveils-ausdt-gold-stablecoin-pegged-synthetic-dollar.html

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