worldcoinindex.com
Tether, the prominent issuer behind the world's largest stablecoin, USDT, has introduced Alloy, a novel synthetic dollar backed by gold. This innovative financial instrument is the first of its kind, described as a "tethered asset" that aims to mirror a reference asset's price through various mechanisms. The creation of Alloy involved Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., both integral parts of the Tether Group.
The finance market has increasingly focused on stablecoins and gold, with gold's value soaring to a record $2,450 in May 2023. Recognizing this trend, Tether has developed a new synthetic dollar anchored in gold, promising to enhance stability within the digital economy. Gold’s inherent stability, security, and reliability contribute to its growing appeal among investors.
The first asset under the Alloy by Tether project is aUSD₮, designed to maintain the value of a single dollar. This synthetic dollar will be "over-collateralized" with Tether Gold and backed by physical gold reserves stored in Switzerland. Users can create aUSD₮ using Tether Gold as collateral, ensuring the synthetic dollar's stability and value.