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News

Tether Alloy Launch Aims to Create Gold Backed Asset

June 17, 2024 - Around 2 mins mins to read

Key Points:

  • The Tether Alloy launch aims to create tethered assets like aUSDT, which is backed by Tether Gold (XAUT).
  • Users can mint aUSDT by depositing Tether Gold via Ethereum smart contracts.
  • Managed by Tether’s affiliates, the platform offers secure, gold-backed digital assets for institutional portfolios.
Tether has officially launched its new platform, Alloy, aimed at enabling the creation of various tethered assets.
Tether Alloy Launch Aims to Create Gold Backed Asset

Tether Alloy Launch to Create Platform for Tethered Assets

Alloy is designed to track the price of reference assets through stable strategies such as excess collateralization of liquid assets and secondary market liquidity pools.

With the Tether Alloy launch, the first token introduced on this platform is aUSDT, a digital currency designed to maintain parity with the US dollar. What sets aUSDT apart is its over-collateralization by Tether Gold (XAUT), backed by physical gold stored in Switzerland. Users can now engage in digital transactions, payments, and remittances with a currency that feels as familiar as the US dollar, without the need to sell their XAUT holdings.

Users can also mint aUSDT tokens by depositing XAUT as collateral. The process is managed through Ethereum-compatible smart contracts deployed on the Ethereum mainnet. These smart contracts ensure transparency by tracking all collateral and minted tokens, using Price Oracles to constantly assess the Mint to Value (MTV) ratio.

Innovative Asset Management with Alloy

Tether Alloy launch is not only supports the creation of tethered assets but also incorporates broader backing mechanisms, potentially including yield-bearing products.

The development and management of the Alloy by Tether platform are handled by Tether’s affiliates, Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V. Both companies are authorized by the CNAD in El Salvador.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Alloy

aUSDT

Tether

Tether Gold

USDT

XAUT

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Tether Alloy Launch Aims to Create Gold Backed Asset

Key Points:

  • The Tether Alloy launch aims to create tethered assets like aUSDT, which is backed by Tether Gold (XAUT).
  • Users can mint aUSDT by depositing Tether Gold via Ethereum smart contracts.
  • Managed by Tether’s affiliates, the platform offers secure, gold-backed digital assets for institutional portfolios.
Tether has officially launched its new platform, Alloy, aimed at enabling the creation of various tethered assets.
Tether Alloy Launch Aims to Create Gold Backed Asset

Tether Alloy Launch to Create Platform for Tethered Assets

Alloy is designed to track the price of reference assets through stable strategies such as excess collateralization of liquid assets and secondary market liquidity pools.

With the Tether Alloy launch, the first token introduced on this platform is aUSDT, a digital currency designed to maintain parity with the US dollar. What sets aUSDT apart is its over-collateralization by Tether Gold (XAUT), backed by physical gold stored in Switzerland. Users can now engage in digital transactions, payments, and remittances with a currency that feels as familiar as the US dollar, without the need to sell their XAUT holdings.

Users can also mint aUSDT tokens by depositing XAUT as collateral. The process is managed through Ethereum-compatible smart contracts deployed on the Ethereum mainnet. These smart contracts ensure transparency by tracking all collateral and minted tokens, using Price Oracles to constantly assess the Mint to Value (MTV) ratio.

Innovative Asset Management with Alloy

Tether Alloy launch is not only supports the creation of tethered assets but also incorporates broader backing mechanisms, potentially including yield-bearing products.

The development and management of the Alloy by Tether platform are handled by Tether’s affiliates, Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V. Both companies are authorized by the CNAD in El Salvador.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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