Tether, the largest provider of stablecoins pegged to the US dollar, has announced the launch of a new digital asset class called "tethered assets."
These assets are backed by physical gold stored in Switzerland and the first token to be introduced is "Alloy by Tether" or aUSDT.
This new token will be part of Tether's digital asset tokenization platform, which is scheduled to launch by the end of the year.
aUSDT is a cryptocurrency that reflects the value of one US dollar and is overcollateralized by Tether Gold (XAUT), meaning it is backed by physical gold.
Users can create aUSDT tokens using XAUT as collateral.