Tether Launches Alloy: A New Gold-Backed Digital Asset

Tether Logo
Tether Logo

Tether, a leading company in the cryptocurrency industry, has announced the official launch of Alloy by Tether, a pioneering digital asset backed by Tether Gold. Developed by Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., both members of the Tether Group, Alloy by Tether aims to enhance stability in the digital economy by combining the reliability of gold with the stability of a tethered asset.

Alloy by Tether introduces a unique category of digital assets designed 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.

The first token in the Alloy by Tether series is aUSD₮, a digital currency designed to track the value of one US dollar, over-collateralized by Tether Gold (XAU₮), supported by physical gold stored in Switzerland. Users can mint aUSD₮ tokens by depositing Tether Gold (XAU₮) as collateral through Ethereum-compatible smart contracts, ensuring transparency and consistent value.

Alloy by Tether is an open platform that allows for the creation of various tethered assets with broader backing mechanisms, potentially including yield-bearing products. This innovation offers a modern approach to asset management for institutions, providing a secure, gold-backed digital asset for portfolio integration. 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.

“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,” said Paolo Ardoino, CEO of Tether. “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 technology available on our upcoming digital asset tokenization platform.”

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