Tether, a stablecoin issuer, has recently announced the launch of a new asset class known as “Alloy” that is backed by Tether Gold. This innovative solution aims to provide stability in the digital economy by combining the stability of a unit of account with the security of gold. The token is developed by Tether’s affiliates Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., and is designed to track the price of reference assets using stabilization strategies like over-collateralization with liquid assets and secondary market liquidity pools.
The first token in the Alloy lineup, aUSD₮, is backed by Tether Gold and is designed to track the value of one U.S. dollar. It is over-collateralized by Tether Gold, which holds real physical gold stored in Switzerland. Users can create aUSD₮ tokens by using Tether Gold as collateral, allowing for digital transactions, payments, and remittances with a currency that mirrors the U.S. dollar without needing to sell their Tether Gold holdings. This process is managed by Ethereum-compatible smart contracts. At the moment, there are already five addresses holding aUSD₮ tokens, according to data from Tether.
Tether CEO Paolo Ardoino expressed excitement about this innovative solution and its potential impact on the market: “We are thrilled to announce our latest addition to our line of tokenized assets – Alloy and aUSD₮,” he said in a statement released by the company today.” This new asset class combines the stability of gold with
