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Tether today announced a new digital asset backed by Tether Gold called “Alloy”. The product was created by Moon Gold NA and Moon Gold El Salvador, part of the Tether Group, and combines the stability of gold with the benefits of digital currencies.
The first token, USDT, is pegged to the US dollar and overcollateralized by Tether Gold, ensuring stability in value. Users can mint USDT on the Ethereum mainnet using Tether Gold as collateral. The Alloy platform also enables the creation of a variety of tethered assets, expanding the possibilities for asset management.
“Although the stabilization mechanism is different from traditional options like USDT, this innovative solution represents an exciting milestone,” said Paolo Ardoino, CEO of Tether. “We also plan to make this innovative technology available for future digital asset tokenization platforms.”
Tether Gold (XAUT) is a stablecoin that digitally represents 1 troy ounce (31.1 grams) of gold on the Ethereum blockchain. Additionally, the announcement highlights that Alloy aims to simplify institutional gold trading and integrate it into investors’ portfolios.
Recently, Paolo Ardoino revealed that Tether plans to invest $1 billion in startups through 2025.
Additionally, the company has expanded its focus beyond crypto products, focusing on educational content, artificial intelligence, data, and Bitcoin mining.
This news follows Tether’s quarterly profit record in the first quarter reported by Crypto Briefing.
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