tether.io
17 June 2024 – Tether, the largest company in the cryptocurrency industry, is excited to announce the official launch of Alloy by Tether, a ground-breaking 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., both of whom are members of the Tether Group, 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 stabilization strategies like over-collateralization with liquid assets and secondary market liquidity pools. This innovative approach provides consistent value and stability between the reference asset and its tethered counterpart.
The first token in the Alloy by Tether lineup is aUSD₮. This digital currency is designed to track the value of one US dollar. What makes aUSD₮ unique is that it is over-collateralized by Tether Gold (XAU₮), which means it is supported by real physical gold stored in Switzerland.
Users can create aUSD₮ tokens using Tether Gold (XAU₮) as collateral. This is a very useful and innovative 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 authorized by the CNAD in El Salvador, will handle the issuance and management of Alloy by Tether, catering to different customer segments and regulatory requirements.
“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.”
For more information on Alloy by Tether, visit: alloy.tether.to
Important Note:
This press release is not an offer to sell or the solicitation of an offer to buy Alloy by Tether tokens like aUSD₮ or XAU₮. Customers may only mint or return Alloy by Tether tokens pursuant to Moon Gold NA, S.A. de C.V.’s and Moon Gold El Salvador, S.A. de C.V.’s Alloy by Tether terms of use available (as of the date of this press release) at https://alloy.tether.to/en/legal-terms. TG Commodities Limited will only sell or redeem XAU₮ pursuant to its gold token terms of sale and service available (as of the date of this press release) at gold.tether.to/legal.
About Alloy by Tether
Alloy by Tether aims to redefine stability in the digital space by combining a stable unit of account with the security of gold. 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.