Tether Launches Alloy by Tether, a Gold-Backed Digital Asset

Tether, a major player in the cryptocurrency industry, has launched Alloy by Tether, a new digital asset backed by Tether Gold (XAU₮). Developed by Moon Gold NA and Moon Gold El Salvador, subsidiaries of the Tether Group, Alloy aims to combine the stability of fiat currency with the security of gold. Alloy introduces tethered assets, which use stabilization strategies like over-collateralization and secondary market liquidity pools to maintain consistent value alignment with reference assets.
The first token under Alloy is aUSD₮, which tracks the value of the US dollar and is over-collateralized by Tether Gold stored in Switzerland. This allows users to engage in digital transactions without selling their gold holdings. Operating on the Ethereum Mainnet via smart contracts, users can create aUSD₮ by depositing Tether Gold as collateral, with transparency ensured through Price Oracles.
Alloy by Tether plans to expand its offerings to include yield-bearing products, aiming to revolutionize asset management for institutional investors. Tether’s CEO, Paolo Ardoino, highlighted Alloy’s potential to introduce a new class of digital assets and its integration into Tether’s upcoming digital asset tokenization platform.