Tether (USDT), the largest company in the cryptocurrency industry, has launched Alloy by Tether, a new digital asset backed by Tether Gold. Alloy by Tether introduces a novel category of digital assets known as tethered assets, which are designed to track the price of reference assets through stabilization strategies such as over-collateralization with liquid assets and secondary market liquidity pools. The first token in the Alloy by Tether lineup is aUSDâ‚®, a digital currency that is over-collateralized by Tether Gold (XAUâ‚®), meaning it is supported by real physical gold stored in Switzerland. This move by Tether aims to provide investors with a stable and secure digital asset that is backed by a tangible and valuable asset like gold [811ea80b].
Tether's launch of Alloy by Tether is part of its broader goal to create an open platform for the creation of different tethered assets with various backing mechanisms, potentially including yield-bearing products. Tether has partnered with Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V. to handle the issuance and management of Alloy by Tether. Additionally, Tether plans to make this technology available in their upcoming digital asset tokenization platform [811ea80b].
This new development adds to Tether's existing efforts to combat illicit finance and ensure the integrity of its stablecoin. Tether has recently increased its monitoring efforts in collaboration with Chainalysis to identify transactions associated with sanctioned entities and analyze the activity of major token holders. These proactive measures demonstrate Tether's commitment to maintaining transparency and security within the cryptocurrency market [b5dc3cd8] [811ea80b].
Tether Holdings, the issuer of the largest stablecoin, has launched a new synthetic dollar backed by gold. The new gold-backed stablecoin operates on Tether's platform called Alloy, built on the Ethereum blockchain. Users can mint tokens by depositing Tether Gold, another token representing the value of physical gold. This launch comes after Tether reported a profit of $4.5 billion in Q1 2024. The launch marks a step towards portfolio diversification beyond the US Dollar and offers an open ecosystem for creating various Tether assets. The gold-backed token resonates with the gold standard used in the monetary system until 1971 [884a9e0f].