What are the features of aUSDT? Will it be more stable than traditional USDT?

Tether launches new USD stablecoin aUSDT

Stablecoin issuer Tether recently announced the launch of a new synthetic USD stablecoin "aUSDT" that tracks the value of the U.S. dollar but is backed by gold reserves. Users can mint this new currency through over-collateralized XAUT tokens that track the value of gold. aUSDT is built by the AlloybyTether platform. Officially, the asset class launched by AlloybyTether is called "TetheredAssets". The goal is to maintain the price of these currencies through stabilization strategies and the prices of certain reference assets (such as the U.S. dollar or gold). consistent. These strategies include using liquid assets for over-collateralization and setting up secondary market liquidity pools (where market participants can more easily buy and sell without worrying about affecting market prices). The purpose of this is to ensure that the value between TetheredAssets and its reference assets remains stable and operates stably in the market. According to the official website, the AlloybyTether platform is developed and managed by MoonGoldNA,SAdeCV and MoonGoldElSalvador,SAdeCV, authorized by El Salvador’s CNAD (National Commission for Digital Assets), both of which are subsidiaries of the Tether Group. As mentioned above, aUSDT can be minted by staking TetherGold (XAUT). XAUT is backed by gold actually stored in Switzerland and has a current market value of approximately US$573 million. XAUT is an ERC-20 token issued based on Ethereum that allows gold to be traded on the chain in the form of tokens. aUSDT is a useful and innovative currency for users who want to use a familiar currency that “feels like the U.S. dollar” in digital transactions, payments, and remittances, but don’t want to sell their gold stablecoins. It allows users to enjoy the convenience of digital currency while maintaining XAUT as an investment asset. What are the advantages of using gold as a value support? What’s the point of aUSDT value tracking the US dollar but being backed by gold reserves? aUSDT has the same value as the US dollar (1aUSDT=1 US dollar), but its actual value is supported by gold. Gold is often considered an "anti-inflation" asset, capable of retaining value during economic instability. Therefore, aUSDT, which is backed by gold, may be more stable in the long term than stablecoins backed only by the US dollar. Even if the U.S. dollar experiences a depreciation, gold usually retains its original value. The intrinsic value protection of aUSDT will be stronger, and users will have higher confidence in it. Tether said that such a design not only meets the market's demand for diversified investment tools, but also provides more flexibility so that institutional-level units can better manage their asset portfolios. "While aUSDT's stability mechanism differs from traditional options like USDT, this innovative solution represents an exciting milestone and we can't wait to see how it interacts with the market." Tether CEO Paul. Paolo Ardoino said.

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