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In its bid to expand its presence in the stablecoin market, Tether has announced the release of a new token, aUSDT, backed by physical gold reserves. This “synthetic dollar” will be deployed on a specialized platform called Alloy.
So, what exactly is aUSDT? It’s a fully gold-backed digital asset built on the Ethereum blockchain. The real reserves of precious metal are guaranteed by two of Tether’s partners, Moon Gold and Moon Gold El Salvador. According to Tether CEO Paolo Ardoino, every holder of this “golden dollar” will be able to track the reserve fund’s status in real-time.
As of now, the market capitalization of Tether’s gold-backed stablecoin has reached an impressive $573 million. All physical reserves of refined gold bars are securely stored in reliable Swiss banks.
The launch of aUSDT underscores Tether’s ambitious plans to dominate the stable cryptocurrency market. In the first quarter of 2024, the company’s profits amounted to $4.5 billion, and the capitalization of its flagship stablecoin USDT reached an astounding $112.5 billion.
For American readers, this move by Tether signifies a significant step towards integrating traditional asset backing with digital currencies, offering a blend of stability and transparency that could appeal to both investors and regulators in the USA.
