Tether, a well-known stablecoin issuer, 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.
Tether CEO Paolo Ardoino expressed excitement about this new addition to their lineup and its potential impact on the market. The first token in the Alloy lineup, aUSD₮, is backed by Tether Gold and 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.
This new development marks another milestone for Tether in its mission to provide stability and value consistency in the digital economy. In early 2020, Tether introduced the XAU₮ stablecoin backed by physical gold, providing investors with a way to hold gold in digital form. Each XAU₮ token represents ownership of one troy ounce of gold stored in a Swiss vault. With Alloy and aUSD₮, Tether continues to expand its offerings and provide innovative solutions for investors looking for stability in the digital economy.
As per data from Tether, there are already five addresses holding aUSD₮ tokens at present time.
Overall, this new asset class from Tether promises to provide stability to investors looking for ways to hold gold digitally while still maintaining its physical security features.
For more information on how you can use Alloy or any other asset class offered by