Tether Group Launches Alloy by Tether, a New Class of Digital Assets Backed by Gold

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.

Cryptocurrency industry leader Tether has officially launched Alloy by Tether, a groundbreaking digital asset pegged to Tether Gold (XAU₮). The development was undertaken 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, with the aim of merging the stability of fiat currencies with the security of gold.

Introducing Tethered Assets: A Novel Concept

Alloy by Tether introduces a new class of digital assets called tethered assets, which are designed to follow the price of reference assets using stabilization strategies like over-collateralization with liquid assets and secondary market liquidity pools. This approach ensures a consistent value and stability between the reference asset and its tethered counterpart.

aUSD₮: The First Token in the Lineup

The first token in the Alloy by Tether family is aUSD₮, which is pegged to the value of one US dollar. What sets aUSD₮ apart is its over-collateralization by Tether Gold (XAU₮), which is backed by physical gold stored in Switzerland. This enables users to engage in digital transactions, payments, and remittances with a currency that carries the familiarity of the US dollar, without having to sell their XAU₮.

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

Future Potential and Institutional Integration

Alloy by Tether is an open platform that enables the creation of diverse tethered assets, potentially ranging from stablecoins to 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., both 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, Tether’s CEO, stated, “We are excited to announce the launch of Alloy by Tether, introducing a class of digital assets pegged to a reference fiat currency and backed by gold. This innovative solution marks a significant milestone, and we eagerly anticipate how it will interact with the rest of the market. Furthermore, we aim to make this groundbreaking technology available on our upcoming digital asset tokenization platform.”

For more details on Alloy by Tether, visit the official Tether website.

About Alloy by Tether

Alloy by Tether aims to redefine stability in the digital realm by combining a stable unit of account with the security of gold. As a digital currency pegged to physical gold, Alloy by Tether provides users and institutions with 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 offers a modern approach to asset management by incorporating tethered assets into portfolios, merging the reliability of gold with the efficiency of digital assets.