Tether has launched a new stablecoin, Alloy (aUSD₮), which combines the stability of the U.S. dollar with the value-preserving characteristics of gold. The coin is minted using Ethereum Virtual Machine (EVM)-compatible smart contracts and is backed by Tether Gold (XAU₮) as collateral. Alloy by Tether is authorized by the National Commission of Digital Assets in El Salvador. Users can mint and redeem aUSD₮ using XAU₮ through the platform's web interface. The system uses overcollateralization, vaults, and a liquidation mechanism to maintain stability. Users can acquire aUSD₮ by depositing XAU₮ to the aUSD₮ smart contract or trading it on exchanges like Bitfinex.