Tether has issued an asset with a peg to the gold stablecoin XAUT

What’s new? Tether, which issues the largest USDT stablecoin by capitalization, has announced the launch of a new digital asset called Alloy, which “aims to redefine stability in the digital economy by combining the strengths of a stable unit of account with the security and reliability of gold.”

Press release

What else is known? Alloy is a new category of digital asset in Tether’s lineup, it is designed to track the price of the underlying asset through stabilization strategies such as over-collateralization of liquid assets and secondary market liquidity pools.

The first token in the Alloy lineup will be aUSDT. This digital currency is designed to track the value of one US dollar. What makes aUSDT unique is that it is overly backed by Tether Gold (XAUT) gold-pegged stablecoins. This means that aUSDT is backed by real physical gold held in Swiss banks.

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Users can create aUSDT tokens using XAUT as collateral. This allows digital transactions, payments, and remittances to be made using aUSDT without having to sell XAUT stablecoins.

Alloy smart contracts are currently deployed on the Ethereum mainnet. The aUSDT smart contract provides transparency by tracking all pledges and tokens issued, and using price oracles to continuously monitor the Mint to Value ratio (the ratio of coins issued to value).

Overall, Alloy is an open platform for creating assets linked to Tether coins. For such assets, a more complex value support system can be created and even income scenarios can be envisioned.

The issuance and management of the assets, as well as regulatory compliance, is the responsibility of Moon Gold NA and Moon Gold El Salvador, both part of the Tether Group and authorized by El Salvador’s digital asset regulator CNAD.

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Tether CEO Paolo Ardoino noted that Alloy’s stabilization mechanism is different from USDT, and this innovative technology will be available on the company’s digital asset tokenization platform in the future.

In addition to USDT, XAUT, and aUSDT, the company also issues EURT (euro), CNHT (offshore Chinese yuan), and MXNT (Mexican peso) stablecoins.