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Tether launches Alloy, a new digital asset backed by Tether Gold



Tether introduces Alloy by Tether, a digital asset backed by Tether Gold, using over-collateralization and liquidity pools for stable value.

Tether has launched Alloy by Tether, a new digital asset backed by Tether Gold. Alloy is designed to track the price of reference assets using strategies like over-collateralization and liquidity pools, ensuring consistent value and stability.

Tether is the leading stablecoin company in the cryptocurrency industry, best known for its USDT stablecoin. In addition to USDT, Tether has introduced Tether Gold (XAU₮), which represents ownership of one fine troy ounce of physical gold on a 1:1 basis. 

The company also offers stablecoins pegged to the Mexican peso (MXN₮), offshore Chinese yuan (CNH₮), and Euro (EUR₮).

Alloy by Tether, the first of the company’s new set of assets, is not your typical digital asset. It’s designed to mirror the value of one US dollar, but what sets it apart is its over-collateralization by Tether Gold (XAU₮). 

In other words, each aUSD₮ is backed by real, physical gold stored in Switzerland, making it a unique and secure investment option. 

Anyone can create aUSD₮ tokens using Tether Gold (XAU₮) as collateral through smart contracts on the Ethereum Mainnet. These contracts track all collateral and minted tokens, using Price Oracles to ensure transparency by continuously evaluating the mint-to-value (MTV) ratio.

Alloy by Tether for Institutions lets financial institutions add tethered assets to their portfolios, providing a modern asset management approach suited to global finance.

Tether noted that 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 manage the issuance and handling of Alloy by Tether for various customer segments and regulatory needs.

Paolo Ardoino, CEO of Tether, expressed excitement about the launch of Alloy by Tether, which introduces a new class of digital assets backed by gold and linked to a fiat currency reference. 

He highlighted that Alloy’s unique stabilization mechanism differentiates it from traditional options like USD₮. 

He also anticipates how Alloy will integrate with the market and has announced plans to integrate it into their forthcoming digital asset tokenization platform.

About a month ago, Tether announced a collaboration with Oobit and the TON Foundation. With TON now hosting over $200 million in USDT, the alliance aims to broaden cryptocurrency’s role as a payment method. 

Tether’s CEO highlighted that this partnership seeks to offer banking services to those without access and transform cryptocurrency transactions to be more seamless and user-friendly.

According to the Head of Business Development at [TON] Wallet, they are moving swiftly toward their goal of making cryptocurrency universally accessible, propelling global adoption forward at an accelerated pace.

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