Tether Announces Launch of Alloy by Tether: A New Digital Asset Backed by Tether Gold

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.