The post A Gold-backed revolution for digital assets appeared on BitcoinEthereumNews.com.

Tether has introduced Alloy. It is an open platform for creating digital assets. Tether Gold will back these assets, which may alternatively be known as tethered assets. Alloy is being brought to the market to reimagine digital economy stability. Recognized as an innovative approach, Alloy will essentially provide consistent value and stability between reference assets and their tethered counterparts. Tethered assets combine the strength of a stable unit of account with the reliability and stability of gold. This could indeed be a pivotal moment, for Gold shares a close association with two elements: stability and constant price appreciation. This is not to be confused with the fact that Gold prices never fluctuate. The motivation is derived from the fact that the price increase in gold is more apparent. Tether will first launch aUSD₮ in Alloy. It will track the value of the US Dollar. The core feature of aUSD₮ is that it is over-collateralized by Tether Gold (XAU₮). Simply put, aUSD₮ is supported by Gold in its physical form, which is stored in Switzerland. The first tethered token on Alloy can be minted by using XAU₮ as collateral. The backend mechanism is pretty simple and non-technical. It entails depositing XAU₮, or Tether Gold, via a process that is managed by smart contracts that are compatible with Ethereum. The smart contract ensures transparency by tracing tokens minted and kept as collateral. Price Oracles evaluate Mint to Value. Paolo Ardoino, the Chief Executive Officer of Tether, has said that they are thrilled with the launch of Alloy, adding that it marks a significant milestone, and they are now waiting to see how the product interacts with others in the market. Paolo has also acknowledged that the stability mechanism is different from traditional options like USD₮. Moving forward, per Ardoino, the plan is…

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Filed under: News - @ June 18, 2024 8:24 am