In a recent social media post, well-known cryptocurrency analyst Willy Woo commended Tether for its innovative approach with the introduction of aUSDT, a stablecoin backed by gold. He hailed the move as a brilliant business strategy by Tether, emphasizing the financial benefits of transitioning from issuing USDT backed by T-Bills to aUSDT backed by gold. Woo pointed out that historically, gold has provided an 8% return compared to T-Bills’ 0-5% return.
Considering Tether’s growing BTC reserves, Woo speculated on the possibility of Tether issuing bUSDT, a stablecoin backed by Bitcoin, in the future. While acknowledging the current market volatility may not support such a move, he envisioned a scenario in a future market cycle where Bitcoin is more established and less volatile, making it a feasible option.
Woo also addressed concerns about the stability of the new stablecoin, drawing a comparison to the failed Terra/Luna project. He highlighted Tether’s significant $5.5 billion in annual revenue as a source of financial stability, enabling the accumulation of more gold to support the success of aUSDT.
These insights from Woo were prompted by a tweet from Tether’s CEO announcing the launch of aUSDT as 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 expected to be integrated into Tether’s new digital assets tokenization platform, scheduled for launch later this year.