Tether announces the launch of Alloy by Tether

Monday 17 June 2024 15:47 CET | News

Tether has launched Alloy by Tether, a tethered asset backed by Tether Gold, developed by Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V. 


As per the official press release, 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. 

Alloy by Tether introduces a novel category of digital assets known as tethered assets, designed to track the price of reference assets through stabilisation strategies like over-collateralisation with liquid assets and secondary market liquidity pools. This approach provides consistent value and stability between the reference asset and its tethered counterpart. 

Tether has launched Alloy by Tether, a tethered asset backed by Tether Gold, developed by Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V.

The first token in the Alloy by Tether lineup is aUSD₮. This digital currency is designed to track the value of one US dollar. According to the press release, what makes aUSD₮ unique is that it is over-collateralised by Tether Gold (XAU₮), which means it is supported by real physical gold stored in Switzerland. 

Furthermore, users can create aUSD₮ tokens using Tether Gold (XAU₮) as collateral. This is a useful combination for users who want to engage in digital transactions, payments, and remittances with a currency that feels as familiar as the US dollar without having to sell their XAU₮.  

Currently, Alloy by Tether smart contracts are deployed on the Ethereum Mainnet. Users can mint aUSD₮ by depositing Tether Gold (XAU₮) as collateral through a process managed by Ethereum-compatible smart contracts. The aUSD₮ smart contract ensures transparency by keeping track of all collateral and minted tokens, using Price Oracles to constantly evaluate the Mint to Value (MTV) ratio. 

Alloy by Tether is an open platform that allows the creation of different tethered assets with broader backing mechanics, potentially including yield-bearing products. This technology provides a modern approach to asset management for institutions as well by offering 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 authorised by the CNAD in El Salvador, will handle the issuance and management of Alloy by Tether, catering to different customer segments and regulatory requirements. 

About Alloy by Tether 

Acting as a digital currency linked to physical gold, Alloy by Tether offers users and institutions 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 provides a modern approach to asset management by incorporating tethered assets into portfolios, combining the reliability of gold with the efficiency of digital assets. 

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Keywords: digital assets, digital currency, crypto asset, Ethereum, product launch
Categories: DeFi & Crypto & Web3
Companies: Tether
Countries: World
This article is part of category

DeFi & Crypto & Web3


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