Tether unveils USDT: a gold-backed, dollar-pegged stablecoin
Tether has unveiled its new platform. Called Tether’s Alloy Introducing the USDT token.
This stablecoin is Overcollateralized by Tether Gold (XAUt), A token representing ownership of physical gold, but its value is It is pegged to the US dollar. This means that the new token will act as a synthetic dollar that reflects the value and functionality of the US dollar without any direct backing.
USDT teaether Asset, It is a digital asset designed to track reference asset prices through overcollateralization and secondary market liquidity pools.
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Users can mint USDT. Deposit XAUt Through smart contracts and price oracles Allows trading against USDT while maintaining gold-backed Tether assets.
The alloy was developed by Tether subsidiary Moon Gold and Moon Gold El Salvador and is expected to be released in the future. Integrated into the digital asset tokenization platform scheduled to launch later this year According to Tether CEO Paolo Ardoino.
USDT is Tether’s first Tether asset, The concept of a synthetic dollar is not new. Last February, Ethena Labs launched USDe, a dollar-pegged synthetic dollar based on Ether.
@0xfoobar, founder of Clusters.xyz, quoted Tether and compared USDT to USDe and other stablecoins. High liquidity and centralized control enable “smarter decisions and reduced principal-agent risk.”
Tether’s launch of Alloy marks a significant advancement in the stablecoin market, combining the value stability of the U.S. dollar with gold-backed security to provide users with a variety of financial tools for a variety of economic activities.
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