- Tether has launched “Alloy,” a platform for creating tokens backed by Tether’s tokenized gold cryptocurrency
- Moon Gold NA and Moon Gold El Salvador have developed the platform
- Tether has claimed that Alloy will redefine digital economy stability by combining stablecoins with the reliability of gold
Crypto company Tether has announced “Alloy,” a platform that allows users to create tokens backed by Tether’s tokenized gold (XAUT) cryptocurrency. The project has been developed by Moon Gold NA and Moon Gold El Salvador, both of which are members of the Tether Group, with Tether stating in a press release that it expects Alloy to “redefine stability in the digital economy” by combining a stablecoin with the “reliability of gold.” The launch represents another example of Tether’s expansion into different areas of the crypto space, announced in December.
Tether Banking on Swiss Gold Reserves
Alloy introduces a new category of digital assets called tethered assets, which stabilize value through over-collateralization and secondary market liquidity pools. This approach ensures consistent value and stability, tracking reference assets effectively, with aUSDT being the first in the stable.
Designed to maintain a 1:1 value with the US dollar just like regular flavor USDT, aUSDT is over-collateralized by XAUT, supported by physical gold stored in Switzerland. However, Tether has not offered would-be users any proof of these gold reserves. Users can create aUSDT tokens by using their Tether Gold as collateral, allowing for digital transactions without selling their gold holdings.
Alloy Will Run on Ethereum
The aUSDT tokens are minted on the Ethereum Mainnet, with smart contracts ensuring transparency and maintaining the Mint to Value (MTV) ratio via Price Oracles. The platform also supports the creation of various tethered assets, including potential yield-bearing products, offering modern asset management solutions for institutions.
Moon Gold NA and Moon Gold El Salvador will manage Alloy by Tether, ensuring compliance with regulatory requirements and catering to diverse customer needs.
Tether CEO Paolo Ardoino stated in the press release that the company’s “innovative solution marks an exciting milestone,” adding that the company planned to make the technology available on its upcoming digital asset tokenization platform.
