Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Tether introduces its new gold-backed digital asset called Alloy

Tether introduces its new gold-backed digital asset called Alloy

Cryptobriefing2024/06/17 13:37
By:Gino Matos

Tether announced today its new digital asset backed by Tether Gold called “Alloy.” The product was created by Moon Gold NA and Moon Gold El Salvador, both part of the Tether Group, and it merges the stability of gold with the benefits of a digital currency.

The first token, aUSD₮, is pegged to the US dollar and over-collateralized by Tether Gold, ensuring value stability. Users can mint aUSD₮ on the Ethereum mainnet using Tether Gold as collateral. The Alloy platform also allows for the creation of various tethered assets, expanding the possibilities for asset management.

“We are thrilled to announce the launch of Alloy by Tether, introducing a class of digital assets backed by gold and tethered to a reference fiat currency,” said Paolo Ardoino, CEO of Tether. “While the stabilization mechanism is different compared to traditional options like USD₮, this innovative solution marks an exciting milestone, and we eagerly anticipate how it will interact with the rest of the market. Moreover, we plan to make this innovative technology available in our upcoming digital asset tokenization platform as well.”

Tether Gold (XAUT) is a stablecoin that digitally represents one troy ounce (31.1 grams) of gold on the Ethereum blockchain. Additionally, the announcement highlights that Alloy is aimed at simplifying gold transactions for institutions, as well as its integration into investors’ portfolios.

Notably, Tether is making moves in 2024. Recently, Paolo Ardoino revealed that Tether is set to invest $1 billion in startups until 2025. Furthermore, the company is expanding its focus out of crypto products, with efforts directed to educational content, artificial intelligence, data, and Bitcoin mining. This news follows Tether’s record in quarterly profit registered in Q1, as reported by Crypto Briefing.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Will Millions of Pi Network Users Lose their Coins Today?

A major issue that affects many users is the impact of referral circles. In Pi Network, pioneers earn rewards based on their network for referrals.

Cryptotimes2025/01/31 00:33

Why TradFi firms could turn to bitcoin margin loans: Maple CEO

Maple’s Sid Powell said that TradFi firms have been in contact with the firm about lending and borrowing in crypto

Blockworks2025/01/30 23:22

The Daily: ECB President Lagarde rejects bitcoin for Eurozone reserves while the Czech central bank considers it and more

European Central Bank President Christine Lagarde said bitcoin is not an option as a reserve asset for the Eurozone’s central bank reserves, citing liquidity, security and regulatory concerns.Meanwhile, the Czech National Bank approved a proposal from Governor Aleš Michl to assess diversifying some of its country’s reserves into bitcoin.

The Block2025/01/30 21:34