• Tether introduces Alloy by Tether (aUSD₮), its first gold-backed stablecoin pegged to the U.S. dollar.
  • The new digital currency aUSD₮, part of the Alloy by Tether series, is over-collateralized with Tether Gold stored in Switzerland, offering a stable yet secure digital asset option.

Tether, the largest company in the cryptocurrency industry, has announced the launch of Alloy (aUSD₮), its first gold-backed stablecoin pegged to the U.S. dollar. This new coin is mintable on the Alloy by Tether platform and is backed by Tether Gold.

Developed by Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V., both part of the Tether Group, Alloy by Tether seeks to redefine stability in the digital economy by blending the steadiness of a stable unit of account with the security and dependability of gold.

In a post on X, Paolo Ardoino, CEO of Tether, stated that Alloy by Tether is an open platform for creating collateralized synthetic digital assets and it will be integrated into Tether's new digital assets tokenization platform launching later this year.

The first token in the Alloy by Tether series is aUSD₮, a digital currency pegged to the value of the U.S. dollar. What sets aUSD₮ apart is that it is over-collateralized with Tether Gold (XAU₮), meaning it is backed by actual physical gold stored in Switzerland.

“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. Moreover, we plan to make this innovative technology available in our upcoming digital asset tokenization platform as well,” said Paolo Ardoino, CEO of Tether.

Users can generate aUSD₮ tokens by using Tether Gold (XAU₮) as collateral. This allows them to carry out digital transactions, payments, and remittances with a currency similar to the U.S. dollar without selling their XAU₮. 

The process is managed by Ethereum-compatible smart contracts called Alloy by Tether, currently active on the Ethereum Mainnet. These smart contracts ensure transparency by tracking all collateral and minted tokens and constantly evaluating the Mint to Value (MTV) ratio using Price Oracles.

Edited by Harshajit Sarmah