Tether CEO explains the aUSDT synthetic dollar strategy
He emphasized the relative stability of gold compared to bitcoin, making it a more suitable asset for short-term collateral
09.09.2024 - 10:00
107
2 min
0
Last updated on Nov 19, 2024
What’s new? In an interview with Bloomberg, Tether CEO Paolo Ardoino explained the rationale behind choosing gold as collateral for the new synthetic dollar aUSDT. He emphasized the relative stability of gold compared to bitcoin, making it a more suitable asset for short-term collateral. Ardoino noted that while bitcoin has its merits, gold’s lower volatility makes it a better option for this initiative.
What else is known? Launched in June, aUSDT is over-collateralized with Tether Gold (XAUT) and is part of Tether’s new Alloy platform. Alloy can be used to create pegged assets, including potentially lucrative products. The platform, through stabilization strategies such as over-collateralization of liquid assets and secondary market liquidity pools, allows the value of a derivative coin to remain stable relative to its underlying asset.
He also pointed to the growing need for alternatives to Tether’s USDT stablecoin, especially in regions facing economic challenges. The new synthetic dollar aims to offer a more stable and transparent option for users looking for a reliable digital currency.
Tether helps authorities recover $109 million worth of USDT involved in illegal transactions
The company has been cooperating with law enforcement agencies around the world since launching the asset in 2014
What else did Ardoino talk about? He commented on the upcoming US presidential election, noting its potential impact on the crypto industry. According to the CEO, the election results could shape the landscape of cryptocurrency regulation in the United States. Ardoino emphasized the importance of innovation and regulation: he believes that good regulation can create a safe environment in which important technologies such as blockchain can thrive.
Useful material?
Telegram 
Twitter Technologies
Network fees will be integrated into the cost of swaps
Nov 22, 2024
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Cryptocurrency rates
-
Bitcoin
$98 560
BTC
-0.11%
-
Ethereum
$3 361.18
ETH
+0.76%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.54
XRP
+8.74%
-
Dogecoin
$0.471756
DOGE
+21.31%
-
Cardano
$1.07
ADA
+22.11%
-
Stellar XLM
$0.433583
XLM
+49.98%
-
Polkadot
$7.71
DOT
+26.69%
-
Bitcoin Cash
$531.67
BCH
+8.97%
-
Litecoin
$102.58
LTC
+14%