Tether Holdings, the largest stablecoin issuer in the crypto market, has created a new gold-backed synthetic dollar, the company announced on Monday.
The token was created on the company’s new Alloy by Tether platform and will be traded as USDT via smart contracts on the Ethereum mainnet blockchain, allowing users to earn money by depositing another Tether token that tracks the value of gold. Tokens can be minted through collateral.
This new service highlights Tether’s ambition to expand beyond the USDT stablecoin. The USDT stablecoin is a $112.5 billion market capitalization token that tracks the value of the U.S. dollar and is backed by U.S. Treasury bills and other securities and investment reserves.
Alloy by Tether was developed by Moon Gold and Moon Gold El Salvador, members of the Tether Group. The company says Alloy by Tether was designed as an open platform to enable the creation of other Tether assets, including potentially profitable products.
“Alloy by Tether introduces a new category of digital assets, known as Tether assets, designed to track the price of a reference asset through stabilization strategies such as overcollateralization with liquid assets and secondary market liquidity pools. ,” the company said in a press release.
The company said Tether Gold has a market capitalization of approximately US$573 million and is backed by physical gold stored in Switzerland.
