cryptobriefing.com
Tether announced today its new digital asset backed by Tether Gold called “Alloy.” The product was created by Moon Gold NA and Moon Gold El Salvador, both part of the Tether Group, and it merges the stability of gold with the benefits of a digital currency.
The first token, aUSD₮, is pegged to the US dollar and over-collateralized by Tether Gold, ensuring value stability. Users can mint aUSD₮ on the Ethereum mainnet using Tether Gold as collateral. The Alloy platform also allows for the creation of various tethered assets, expanding the possibilities for asset management.
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“We are thrilled to announce the launch of Alloy by Tether, introducing a class of digital assets backed by gold and tethered to a reference fiat currency,” said Paolo Ardoino, CEO of Tether. “While the stabilization mechanism is different compared to traditional options like USD₮, this innovative solution marks an exciting milestone, and we eagerly anticipate how it will interact with the rest of the market. Moreover, we plan to make this innovative technology available in our upcoming digital asset tokenization platform as well.”
Tether Gold (XAUT) is a stablecoin that digitally represents one troy ounce (31.1 grams) of gold on the Ethereum blockchain. Additionally, the announcement highlights that Alloy is aimed at simplifying gold transactions for institutions, as well as its integration into investors’ portfolios.
Notably, Tether is making moves in 2024. Recently, Paolo Ardoino revealed that Tether is set to invest $1 billion in startups until 2025. Furthermore, the company is expanding its focus out of crypto products, with efforts directed to educational content, artificial intelligence, data, and Bitcoin mining. This news follows Tether’s record in quarterly profit registered in Q1, as reported by Crypto Briefing.