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Tether Enters the Gold Game

The USDT giant releases a gold-backed stablecoin.
Jack Inabinet Jack Inabinet Jun 17, 20241 min read
Tether Enters the Gold Game

Crypto’s leading stablecoin issuer Tether has launched 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 that Alloy will be used to create “collateralized synthetic digital assets” and is a component of the firm’s tokenization platform, which is slated 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.

Jack Inabinet

Written by Jack Inabinet

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Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial apartment development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business and remains based out of the Seattle area.

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