Tether Launches New Digital Asset Backed by Gold
Tether has revealed its newest digital asset, Alloy, backed by Tether Gold.
This combination of gold’s stability with the benefit of digital currency was created by Moon Gold NA and Moon Gold El Salvador both found in Tether Group.
The initial token is aUSD₮ and it is over-collaterized by Tether Gold in US dollar terms so as to guarantee stable value. On Ethereum mainnet, users can mint aUSD₮ using Tether as collateral. The platform also provides for other tethered assets hence enhancing asset management opportunities.
According to Paolo Ardoino, CEO of Tether, “Alloy is an exciting innovation in the arena of gold-backed digital assets that are linked to fiat currencies.”
READ MORE: Tether CEO Highlights USDT’s Key Role in Boosting US Dollar Demand in Emerging Markets
He pointed out that this new solution represents a significant milestone even though its stabilization mechanism differs from traditional options like USD₮. Ardoino also hinted at plans to incorporate this technology into Tether’s upcoming digital asset tokenization platform.
Tether Gold (XAUT), on the Ethereum network, equals one troy ounce (31.1 grams) of gold. The purpose of Alloy is to make gold transactions easier for institutions and their integration into investors’ portfolios.
Moreover, there are also ambitious plans for 2024 by Tether. Just recently, Paolo Ardoino disclosed that $1 billion would be invested by Tether on startups before 2025. Furthermore, the company will no longer focus only on crypto products but it will also have knowledge content system which may include educational content, AI solutions or bitcoin mining operations among others.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
