Tether Gold

Gold

Tether, a prominent player in the cryptocurrency sector, has unveiled Alloy, a groundbreaking digital asset tied to Tether Gold (XAU₮). Developed by Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V., subsidiaries of the Tether Group, Alloy aims to merge the stability of fiat currency with the security of gold. 
Alloy by Tether <a href="https://tether.io/news/tether-announces-launch-of-alloy-by-tether-a-new-digital-asset-backed-by-tether-gold/" target="_blank" rel="noreferrer noopener">introduces</a> a novel category of digital assets called tethered assets. These assets are designed to mirror the value of reference assets through stabilization strategies like over-collateralization with liquid assets and secondary market liquidity pools. This approach ensures a consistent value and stability alignment between the reference asset and its tethered digital counterpart. 
<div class="wp-block-image"> 
 <figure class="aligncenter">
 <img decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXfbjj6VaqFQIJOk9dg2bvJBy7ULw5D_8s-LZuyq2uCnoOboOPIUA6yWAhy0g6Mf6pSJ4ae6_S-LsuhKLMo8SNmNaZMhK2S4d_A8RevLTKsLz7LimZB_KKqrUzYXnSCx--_VWtlzRWl_KYrWTm4nEFuFSsI?key=0N8XUX7RqT8LarJukpIr0g" alt="AD 4nXfbjj6VaqFQIJOk9dg2bvJBy7ULw5D 8s LZuyq2uCnoOboOPIUA6yWAhy0g6Mf6pSJ4ae6 S LsuhKLMo8SNmNaZMhK2S4d A8RevLTKsLz7LimZB KKqrUzYXnSCx VWtlzRWl KYrWTm4nEFuFSsI?key=0N8XUX7RqT8LarJukpIr0g">
 <figcaption class="wp-element-caption">
 Image Source: <a href="https://x.com/Alloy_tether/status/1802676443781923289" target="_blank" rel="noreferrer noopener">Alloy by Tether</a>
 </figcaption>
 </figure>
</div> 
The first token launched under Alloy by Tether is aUSD₮, crafted to track the value of one US dollar. What sets a USD₮ apart is its over-collateralization by Tether Gold (XAU₮), which is backed by physical gold reserves stored in Switzerland.&nbsp; 
This setup enables users to engage in digital transactions, payments, and remittances using a currency that retains the familiar stability of the US dollar without needing to sell their XAU₮ holdings. 
Alloy by Tether operates on the Ethereum Mainnet via smart contracts. Users can create aUSD₮ by depositing Tether Gold (XAU₮) as collateral through Ethereum-compatible smart contracts. These contracts ensure transparency by monitoring all collateral and minted tokens, leveraging Price Oracles to continuously assess the mint-to-value (MTV) ratio. 
Looking ahead, Alloy by Tether plans to expand its offerings to include potentially yield-bearing products. This initiative aims to revolutionize asset management for institutional investors by providing a secure, gold-backed digital asset that can seamlessly integrate into diverse portfolios.&nbsp; 
Paolo Ardoino, CEO of Tether, expressed enthusiasm about Alloy’s launch, highlighting its role in introducing a new class of digital assets tethered to gold and fiat currencies. He anticipates how this innovative solution will interact with the broader market landscape and aims to integrate this technology into Tether’s forthcoming digital asset tokenization platform. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/06/15/tether-ceo-highlights-usdt-as-key-u-s-dollar-alternative/" target="_blank" rel="noreferrer noopener">Tether CEO says USDT could emerge as Dollar Alternative</a> 
</blockquote>

Tether Launches Alloy with Fiat Stability & Gold Security

The Crypto Times

Other articles published on Jun 17, 2024

Will Cardano Hit $2 by the End of 2024?

Is It Too Late To Buy CVX? Convex Finance Price Soars 63% And This Might Be The Next Crypto To Ex...

Bitget Wallet Launches Smart Money Feature for Solana, Introduces Cross-Chain Transactions

Polygon logs 200% hike in THIS key metric: Can it help MATIC?

BTC, ETH and XRP Price Prediction for June 17

Breaking Records: Ethereum Hits 246.18 TPS, with 21.2 Million Daily Transactions

Join our free newsletter for daily crypto updates!