Tether Launches Alloy, a New Token Minting Platform on the Ethereum Network

Tether, the company behind the $110 billion stablecoin, announced on Monday the launch of Alloy, a new token minting platform on the Ethereum network.

Stablecoin issuer Tether announced the launch of Alloy on Monday, a new token minting platform on the Ethereum network. The platform will allow users to create tokens that are collateralized by Tether’s tokenized gold (XAUT).

“Alloy by Tether is an open platform that enables the creation of synthetic digital assets, to be part of the new Tether digital assets tokenization platform, launching later this year,” said Paolo Ardoino, CEO of Tether, in an X post. Tether also stated in a press release that the platform may offer yield-bearing products in the future.

The first asset available on the Alloy platform is aUSDT, a token that is pegged to the U.S. dollar. Investors can mint aUSDT by using Tether’s XAUT as collateral. XAUT has a market capitalization of $570 million and is backed by physical gold that is stored in Switzerland.

The aUSDT token is designed for users who want to make crypto payments and remittances without having to sell their gold-backed tokens. According to the press release, the collateral will be overcollateralized, and new tokens will be limited to 75% of the collateral value.

The asset issuance for Alloy will be handled by Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., both of which are regulated under El Salvador’s National Commission of Digital Assets.

This new offering is part of Tether’s broader strategy to expand beyond USDT, the largest stablecoin by market value and a key component of the digital asset market. Tether has recently invested in bitcoin (BTC) mining, payment processing, and artificial intelligence through cloud computing. In April, Ardoino outlined plans to launch a tokenization platform that would enable the creation of digital versions of various assets, including bonds, stocks, funds, and loyalty reward points.