In a recent social media post, well-known cryptocurrency analyst Willy Woo commended Tether for its latest innovation, a gold-backed stablecoin called aUSDT. He lauded the move as a brilliant business concept by Tether. Woo pointed out the financial benefits of Tether’s novel approach, noting that instead of issuing regular USDT and earning yields from T-Bills, Tether can now issue aUSDT and generate profits from gold. Historically, gold has offered an 8% return compared to the 0-5% return from T-Bills.
Considering Tether’s accumulation of a significant BTC treasury, Woo speculated about the possibility of Tether issuing a Bitcoin-backed stablecoin, bUSDT, in the future. While this idea may not be practical at the moment due to the volatile nature of the bear market, it could become feasible in a future cycle where Bitcoin is more established and less unpredictable.
Woo also addressed concerns regarding the stability of the new stablecoin in his tweet, drawing a comparison to the ill-fated Terra/Luna project. He highlighted the fact that Tether, unlike Terra/Luna, has a substantial annual revenue of $5.5 billion, providing financial stability that allows Tether to accumulate more gold and ensure the success of aUSDT.
The analyst’s remarks were in response to a tweet by 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 be released later this year.
