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The company behind the largest stablecoin by market cap is launching a new digital asset backed by real gold.
USDT Cord source is advertisement A new digital asset backed by the over-collateralization of Tether Gold (XAUT) is called USDT.
According to the press release, USDT is the first product of a new set of offerings called Alloy by Tether.
“Alloy by Tether introduces a new class of digital assets known as pegged assets, designed to track benchmark asset prices through peg strategies such as over-collateralization with liquid assets and secondary market liquidity pools.
This innovative approach provides constant value and stability between the reference asset and its pegged counterpart.
According to the announcement, the backing of USDT by XAUT means that the asset is backed by physical gold dealers in Switzerland.
Alloy by Tether smart contracts are currently used on Ethereum (Ethereum) where USDT can be created using Tether Gold as collateral.
Tether CEO Paolo Ardoino says,
“Although the stabilization mechanism is different compared to traditional options like USDT, this innovative solution represents an exciting milestone, and we eagerly anticipate how it will interact with the rest of the market.
Moreover, we plan to make this innovative technology available in our upcoming digital asset tokenization platform as well.
The announcement comes more than a month after Kaiko Analytics published the data suggestion That rivals to stablecoins are taking away Tether’s market dominance.
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Featured Image: Shutterstock/Tetima Ongkantong
