Quick take:
- Alloy by Tether ushers in a new category of tokens dubbed tethered assets.
- Tether is also launching a platform that allows the creation of different tethered assets backed by mechanisms potentially including yield-bearing products.
- Alloy by Tether is developed by Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V., members of the Tether Group.
Tether has announced the launch of Alloy by Tether (aUSDT), a new digital asset backed by Tether Gold (XAUT). The new asset creates a new category of digital tokens dubbed tethered assets, which track the underlying assets through stabilisation strategies like over-collateralization with liquid assets and secondary market liquidity pools.
Tether says its goal for the token is to “redefine the stability of the digital economy” by combining the “strengths of a stable unit of account with the security and reliability of gold.”
Alloy by Tether is developed by Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V., members of the Tether Group. Both will handle the issuance and management of Alloy Tether to meet the necessary customer and regulatory requirements.
According to Tether, aUSDT tracks the value of the US dollar and is over-collateralised by Tether Gold (XAUT), thus it is backed by real physical gold stored in Switzerland.
Users can mint aUSDT by depositing Tether Gold (XAUT) as collateral through an Ethereum-compatible smart contract. They will then be able to use the aUSDT for digital transactions, payments, and remittances without selling their gold-backed XAUT.
Commenting on the announcement, Paolo Ardoino, CEO of Tether said: “While the stabilisation mechanism is different compared to traditional options like USDT, this innovative solution marks an exciting milestone, and we eagerly anticipate how it will interact with the rest of the market.”
The company also plans to make the technology available in its upcoming digital asset tokenisation platform, enabling the deployment of more digital assets backed by various products and tethered to a reference currency, Ardoino said.
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