Tether, the issuer of the largest stablecoin in the USDT market, made an exciting announcement on June 17th regarding their new digital asset backed by Tether Gold, called “Alloy”. In their official statement, the company explained that Moon Gold NA and Moon Gold El Salvador, both part of the Tether Group, collaborated to create this product, which combines the stability of gold with the benefits of a digital currency.
“As the leading company in the cryptocurrency sector, Tether 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, 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 tethered assets, designed to track the price of reference 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 aUSD₮. This digital currency is designed to track the value of the US dollar. What makes aUSD₮ unique is that it is over-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 emphasized that Alloy by Tether is an open platform that aims to enable the creation of various tethered assets with a broader support mechanic, potentially including yield 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 tethered to a reference fiat currency.”
“Although the stabilization mechanism differs from 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. Additionally, we plan to make this innovative technology available on our upcoming digital asset tokenization platform,” added the CEO.
In a tweet, Paolo Ardoino announced the launch of aUSDT, the first Tethered asset, which is a synthetic dollar over-collateralized by XAUt (Tether Gold). Alloy by Tether, an open platform for creating collateralized synthetic digital assets, will soon be integrated into the new @Tether_to digital assets.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies involves a risk of financial loss.
