Tether Gold

Gold

Stablecoin issuer Tether has announced the launch of a new asset class backed by Tether Gold in a bid to enhance value consistency and stability. 
<a href="https://crypto.news/tag/tether/" target="_blank" rel="">Tether</a> is expanding its list of stablecoins with a new asset class aimed at enhancing stability in the digital economy by combining the attributes of a stable unit of account with the security of gold. In a <a href="http://tether.io/news/tether-announces-launch-of-alloy-by-tether-a-new-digital-asset-backed-by-tether-gold?data=j09scrypot909dnews0i03" target="_blank" rel="">blog announcement</a> on Jun 17, Tether said the new token called “Alloy” is backed by Tether Gold (XAU₮), a token that provides ownership of real physical <a href="https://crypto.news/tag/gold/" target="_blank" rel="">gold</a>. 
The so-called “tethered asset,” developed by Tether’s affiliates Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., is reportedly designed to track the price of reference assets using “stabilization strategies like over-collateralization with liquid assets and secondary market liquidity pools.” 
 You might also like: <a href="https://crypto.news/us-government-attempts-to-seize-200k-in-tether-that-was-part-of-pig-butchering-crypto-scam/" rel=""> US government attempts to seize $200k in Tether that was part of pig-butchering crypto scam </a> 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “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.” 
 Tether CEO Paolo Ardoino 
</blockquote> 
The first token in the Alloy lineup, aUSD₮, is designed to track the value of one U.S. dollar and is over-collateralized by Tether Gold, which is backed by “real physical gold stored in Switzerland,” Tether says. As of press time, there are five addresses holding aUSD₮ already, according to data from Tether. 
Users can create aUSD₮ tokens by using Tether Gold as collateral, enabling digital transactions, payments, and remittances with a currency that mirrors the U.S. dollar without needing to sell their Tether Gold holdings, the stablecoin issuer explains, adding that the process is managed by Ethereum-compatible smart contracts. 
For Tether, aUSD₮ is the latest offering in its line of tokenized assets. In early 2020, Tether <a href="https://crypto.news/bitfinex-exchange-tether-gold-xaut-margin-trading-5x-leverage/" target="_blank" rel="">unveiled</a> the XAU₮ stablecoin backed by physical gold, offering investors a way to hold gold in digital form. Each XAU₮ token represents ownership of one troy ounce of gold held in a Swiss vault. 
 Read more: <a href="https://crypto.news/tether-invests-over-18m-in-cross-border-exchange-startup-xrex/" rel=""> Tether invests over $18m in cross-border exchange startup XREX </a>

Tether unveils gold-backed asset class to ‘redefine stability’ in digital economy

crypto.news

Other articles published on Jun 17, 2024

Celestia Adopts Modular Approach to Solve Blockchain Scalability Issues

Ethereum Foundation Moves $64.4 Million Worth Of ETH, Is This A Dump?

Crypto Price Predictions: BlockDAG’s Global Impact Bolsters $30 Price Forecast; Litecoin Bullish ...

BitMEX Founder Arthur Hayes Announced the Altcoin That Will Dethrone Solana (SOL)!

Dogecoin Developer Shares ‘Easily Forgotten’ Warning With The Crypto Community

Investors Eye Qubetics Whitelist While Binance and Ripple Navigate Controversies

Join our free newsletter for daily crypto updates!