Analyst Praises Tethers Introduction of GoldBacked Stablecoin

Renowned crypto expert Willy Woo recently took to Twitter to commend Tether’s groundbreaking innovation – aUSDT, a stablecoin backed by gold. He hailed it as a stroke of genius on Tether’s part, noting the financial benefits of this new strategy. Instead of issuing USDT and earning returns from T-Bills, Tether can now issue aUSDT and profit from gold, which historically offers an 8% return compared to T-Bills’ 0-5%.
With Tether amassing a significant BTC treasury, Woo speculated on the possibility of them introducing bUSDT, a stablecoin backed by Bitcoin in the future. While this move may not be feasible in the current bear market environment, Woo believes it could be a reality in a future cycle where Bitcoin is more established and less volatile.
Woo also addressed concerns about the stability of aUSDT, drawing a comparison to the ill-fated Terra/Luna project. Unlike Terra/Luna, which lacked substantial income, Tether boasts a substantial $5.5 billion in annual revenue, providing a solid financial foundation for aUSDT’s success. Woo’s remarks were in response to Tether’s CEO announcing the launch of aUSDT, the first Tethered asset. The CEO described aUSDT as a synthetic dollar over-collateralized by Tether Gold (XAUt) and introduced Alloy by Tether, an open platform for creating collateralized synthetic digital assets. This platform is set to be integrated into Tether’s new digital assets tokenization platform, scheduled to launch later this year.