Tether launches Alloy (aUSD₮), a digital currency tracking the US dollar. It’ll be over-collateralized by Tether Gold (XAU₮), which is in turn backed by physical gold stored in Switzerland.

Tether has introduced Alloy by Tether, a new class of “tethered assets” that use over‑collateralization and market mechanisms to track reference prices while being backed by other cryptoassets. The first token in this lineup is aUSD₮, a digital currency designed to track the value of 1 US dollar while being backed by Tether Gold (XAU₮), which represents ownership of physical gold stored in Switzerland. Users mint aUSD₮ by depositing XAU₮ into Ethereum smart contracts, which manage collateral, use price oracles to monitor the collateralization ratio, and are intended to maintain the peg via over‑collateralization and secondary market liquidity rather than algorithmic stabilization. Alloy by Tether is positioned as an open platform that can support multiple tethered assets and broader collateral types, potentially including yield‑bearing products and integration into Tether’s forthcoming tokenization platform. For Tether and its subsidiaries Moon Gold NA and Moon Gold El Salvador, which handle issuance under authorization from El Salvador’s CNAD, aUSD₮ offers a way for holders of gold-backed XAU₮ to maintain exposure to gold while simultaneously using a dollar‑referenced asset for payments, remittances, and day‑to‑day transactions without selling their gold. Strategically, the launch expands Tether beyond traditional fiat‑pegged stablecoins into synthetic, gold‑collateralized instruments, aligning with a broader industry trend toward tokenized real‑world assets and potentially addressing regulatory and trust concerns by tying digital assets to audited, physically stored gold in a politically stable jurisdiction.

✨ AI-generated background, compiled from web sources — not editorial content.

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