CryptoNews

Tether Launches Alloy, Opening the Gates for Issuing Gold Standard Compliant Assets

Tether, one of the largest companies in the stablecoin arena, has announced the launch of Alloy, a series of assets pegged to the value of another asset, but collateralized with gold. The first token in the Alloy lineup is AUSDT, which will track the value of the U.S. dollar using Tether Gold (XAUT) as collateral.

Tether Launches Alloy to Ease Issuance of Gold-Backed ‘Tethered Assets’

Tether, the company behind the largest stablecoin in the crypto market, has launched Alloy, a new line of cryptocurrency assets that seek to return to the gold standard. Alloy was engineered by Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V., two companies that are part of the Tether group, and its name comes from the concept of combining two assets to create a new one.

Alloy bases its inner workings in the concept of “tethered assets,” which track the value of other currencies but are collateralized by another liquid asset. Tether states this allows for “consistent value and stability between the reference asset and its tethered counterpart.”

The first asset launched by Tether in the Alloy lineup was AUSDT, a token that tracks the price of the U.S. dollar and is backed by gold. Tether backs this token with Tether Gold (XAUT) to over-collateralize the token value backed by physical gold held by the company in Switzerland. Users can mint ASUD tokens depositing Tether as collateral.

Tether CEO Paolo Ardoino explained that “while the stabilization mechanism is different compared to traditional options like USDT, this innovative solution marks an exciting milestone, and we eagerly anticipate how it will interact with the rest of the market.” Ardoino also stated that this technology would be available in Tether’s upcoming digital tokenization platform.

At launch, AUST tokens will be available only in the Ethereum blockchain, allowing XAUT holders to transact using a dollar-like currency without selling their tokens. Over 8 million AUSDT have been issued, backed by over 140 Kg of gold.

Source: Bitcoin

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