Tether Announces New Gold-Backed Digital Asset “Alloy”

The issuer of the largest stablecoin in the USDT market, Tether, announced, on June 17, its new digital asset backed by Tether Gold, “Alloy”. In its official statement, the company explained that Moon Gold NA and Moon Gold El Salvador, both from the Tether Group, created the product, which highlights the mix between the stability of gold and the benefits of a digital currency.

“Tether, the largest company in the cryptocurrency industry, is pleased to announce the official launch of Alloy by Tether, an innovative tethered asset backed by Tether Gold. Developed by Moon Gold NA, SA de CV and Moon Gold El Salvador, SA de CV, both members of the Tether Group, Alloy by Tether aims to redefine stability in the digital economy by combining the strengths of a stable unit of account with the security and reliability of gold.”

Tether explained that Alloy introduces a new category of digital assets known as pegged assets, designed to track the price of benchmark assets through stabilization strategies such as over-collateralization with liquid assets and secondary market liquidity pools.

“The first token in the Alloy by Tether line is USD₮. This digital currency is designed to track the value of one US dollar. What makes aUSD₮ unique is that it is overly collateralized by Tether Gold (XAU₮), meaning it is backed by real physical gold stored in Switzerland. Users can create aUSD₮ tokens using Tether Gold (XAU₮) as collateral.”

The company highlighted that Alloy by Tether is an open platform that aims to enable the creation of different linked assets with broader backing mechanics, potentially including yield-bearing products. Paolo Ardoino, CEO of Tether, commented on the launch of the new product, stating: “We are excited to announce the launch of Alloy by Tether, introducing a class of digital assets backed by gold and pegged to a reference fiat currency,” he said.

“While the stabilization mechanism is different compared to traditional options like USD₮, this innovative solution represents an exciting milestone and we eagerly anticipate how it will interact with the rest of the market. Furthermore, we plan to make this innovative technology also available on our next digital asset tokenization platform”, added the CEO.

aUSDT, the first Tethered asset, just launched!
aUSDT is a synthetic dollar over-collateralised by XAUt (Tether Gold).

Alloy by Tether is an open platform that allows to create collateralised synthetic digital assets and will soon be part of the new @Tether_to digital assets… https://t.co/J8JyWt9duh

— Paolo Ardoino 🤖🍐 (@paoloardoino) June 17, 2024

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