Tether Introduces Gold-Backed Digital Asset

In a groundbreaking move, Tether, the well-known stablecoin issuer, has launched a new digital asset called Alloy by Tether (aUSDT). This innovative token is backed by Tether Gold (XAUT), providing a unique blend of digital transactions and the security of real physical gold.

aUSDT is designed to track the value of the US dollar, making it an ideal choice for digital transactions, payments, and remittances without the need to sell the gold-backed XAUT. Tether plans to make the technology behind aUSDT available in its upcoming digital asset tokenization platform, aiming to redefine the stability of the digital economy.

The upcoming platform will enable the deployment of more digital assets backed by various products and tethered to a reference currency. Alloy by Tether is just the beginning, as Tether aims to expand the category of tethered assets created by Alloy.

Both Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V., members of the Tether Group, are responsible for the development and management of Alloy Tether to meet customer and regulatory requirements. The real physical gold used to back aUSDT is stored securely in Switzerland.

Users can mint aUSDT by depositing Tether Gold (XAUT) as collateral through an Ethereum-compatible smart contract. This process creates a new category of digital tokens called tethered assets, which track the value of underlying assets through stabilization strategies like over-collateralization with liquid assets and secondary market liquidity pools.

Paolo Ardoino, CEO of Tether, anticipates how the new aUSDT will interact with the market. He believes that by combining the strengths of a stable unit of account with the security and reliability of gold, Tether is set to redefine the stability of the digital economy.

In addition, Tether is planning to launch a platform that allows the creation of different tethered assets, potentially including yield-bearing products. This move could further solidify Tether's position as a leader in the stablecoin market and contribute to the overall stability of the digital economy.

As Tether continues to innovate and push the boundaries of digital assets, the future of the digital economy looks increasingly secure and promising. With Alloy by Tether, Tether is providing a stable, gold-backed digital asset that could revolutionize the way we think about and use digital currency.