# Tether Enters the Gold Game

*Author: Jack Inabinet*
*Published: Jun 17, 2024*
*Source: https://www.bankless.com/de/gold-tether-stablecoin*

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Crypto’s leading stablecoin issuer Tether has [launched](https://x.com/Alloy_tether/status/1802676443781923289) 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](https://x.com/paoloardoino/status/1802693087644320087) that Alloy will be used to create “collateralized synthetic digital assets” and is a component of the firm’s tokenization platform, which is [slated](https://tether.io/news/tether-announces-launch-of-alloy-by-tether-a-new-digital-asset-backed-by-tether-gold/) 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.
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