Tether Launches Synthetic Dollar Backed by Tokenized Gold

Tuesday, June 18, 2024 at 2:30pm UTC

%Tether, the company behind the (CRYPTO: $USDT) %Stablecoin, has launched a new token minting platform called Alloy.

The Alloy platform runs on the %Ethereum (CRYPTO: $ETH) network and enables users to create digital tokens that are backed by tokenized gold (XAUT).

For its part, Tether has created a new synthetic dollar that it is backing with tokenized gold.

Tokenized gold has a $570 million U.S. market capitalization and is backed by physical gold held in Switzerland, said Tether in a news release.

Tether's newest offering is part of the organizations efforts to expand beyond USDT, which is the worlds largest stablecoin with a market value of $110 billion U.S.

In recent months, Tether has also invested in %Bitcoin (CRYPTO: $BTC) mining, digital payments processing, and artificial intelligence (A.I.) cloud computing firms.

Tethers management team has also publicly discussed plans to launch a tokenization platform that will create digital versions of assets such as bonds, stocks, and loyalty reward points.

The USDT stablecoin is pegged to the U.S. dollar on a 1:1 basis.

comtex tracking