Tether has introduced Alloy by Tether, a groundbreaking digital asset supported by Tether Gold. Developed by Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V., this innovative product aims to combine the stability of a fixed unit of account with the security and reliability of gold.
Alloy by Tether marks the emergence of a new category of digital assets called tethered assets. These assets are designed to mirror the value of reference assets through sophisticated stabilization mechanisms, such as over-collateralization with liquid assets and secondary market liquidity pools. This ensures a consistent value and stability relationship between the reference asset and its digital counterpart.
The debut of aUSD₮
The initial token in the Alloy by Tether series is aUSD₮, a digital currency pegged to the value of one US dollar. What distinguishes aUSD₮ is its over-collateralization by Tether Gold (XAU₮), indicating that it is backed by physical gold held in Switzerland. Users can generate aUSD₮ tokens by using Tether Gold (XAU₮) as collateral. This provides a significant advantage for individuals looking to participate in digital transactions and remittances without needing to sell off their XAU₮ assets.
Alloy by Tether leverages smart contracts deployed on the Ethereum Mainnet. Users can create aUSD₮ by pledging Tether Gold (XAU₮) as collateral through a transparent process managed by Ethereum-compatible smart contracts. These contracts ensure transparency by monitoring all collateral and generated tokens, while utilizing Price Oracles to continuously evaluate the Mint to Value (MTV) ratio.