Tether Launches Alloy: A Digital Asset Backed by Tether Gold (XAU₮)

Tether,
a
leading
company
in
the
cryptocurrency
industry,
has
officially
launched
Alloy
by
Tether,
a
pioneering
digital
asset
backed
by
Tether
Gold
(XAU₮).
The
development
was
carried
out
by
Moon
Gold
NA,
S.A.
de
C.V.
and
Moon
Gold
El
Salvador,
S.A.
de
C.V.,
both
part
of
the
Tether
Group,
aiming
to
combine
the
stability
of
a
fiat
currency
with
the
security
of
gold.

Innovative
Tethered
Assets

Alloy
by
Tether
introduces
a
new
class
of
digital
assets
known
as
tethered
assets,
which
aim
to
track
the
price
of
reference
assets
through
stabilization
strategies
such
as
over-collateralization
with
liquid
assets
and
secondary
market
liquidity
pools.
This
approach
ensures
consistent
value
and
stability
between
the
reference
asset
and
its
tethered
counterpart.

First
Token:
aUSD₮

The
first
token
in
the
Alloy
by
Tether
lineup
is
aUSD₮,
designed
to
track
the
value
of
one
US
dollar.
Unique
to
aUSD₮
is
its
over-collateralization
by
Tether
Gold
(XAU₮),
backed
by
physical
gold
stored
in
Switzerland.
This
allows
users
to
engage
in
digital
transactions,
payments,
and
remittances
with
a
currency
that
maintains
the
familiarity
of
the
US
dollar
without
selling
their
XAU₮.

Alloy
by
Tether
smart
contracts
are
currently
deployed
on
the
Ethereum
Mainnet.
Users
can
mint
aUSD₮
by
depositing
Tether
Gold
(XAU₮)
as
collateral
through
Ethereum-compatible
smart
contracts.
These
contracts
ensure
transparency
by
tracking
all
collateral
and
minted
tokens,
using
Price
Oracles
to
constantly
evaluate
the
Mint
to
Value
(MTV)
ratio.

Future
Prospects
and
Institutional
Integration

Alloy
by
Tether
is
an
open
platform
that
allows
the
creation
of
various
tethered
assets,
potentially
including
yield-bearing
products.
This
technology
offers
a
modern
approach
to
asset
management
for
institutions
by
providing
a
secure,
gold-backed
digital
asset
that
can
be
integrated
into
portfolios.
Moon
Gold
NA,
S.A.
de
C.V.,
and
Moon
Gold
El
Salvador,
S.A.
de
C.V.,
authorized
by
the
CNAD
in
El
Salvador,
will
handle
the
issuance
and
management
of
Alloy
by
Tether,
catering
to
different
customer
segments
and
regulatory
requirements.

Paolo
Ardoino,
CEO
of
Tether,
remarked,
“We
are
thrilled
to
announce
the
launch
of
Alloy
by
Tether,
introducing
a
class
of
digital
assets
backed
by
gold
and
tethered
to
a
reference
fiat
currency.
This
innovative
solution
marks
an
exciting
milestone,
and
we
eagerly
anticipate
how
it
will
interact
with
the
rest
of
the
market.
Moreover,
we
plan
to
make
this
innovative
technology
available
in
our
upcoming
digital
asset
tokenization
platform.”

For
more
information
on
Alloy
by
Tether,
visit
the

official
Tether
website.

About
Alloy
by
Tether

Alloy
by
Tether
aims
to
redefine
stability
in
the
digital
space
by
combining
a
stable
unit
of
account
with
the
security
of
gold.
Acting
as
a
digital
currency
linked
to
physical
gold,
Alloy
by
Tether
offers
users
and
institutions
a
secure
option
for
transactions
and
asset
management.
Users
can
create
Alloy
by
Tether
tokens
using
Tether
Gold
as
collateral,
ensuring
a
connection
to
the
stability
of
gold.
Alloy
by
Tether
provides
a
modern
approach
to
asset
management
by
incorporating
tethered
assets
into
portfolios,
combining
the
reliability
of
gold
with
the
efficiency
of
digital
assets.

Image
source:
Shutterstock