The post Tether Launches Alloy: A Digital Asset Backed by Tether Gold (XAU₮) appeared on BitcoinEthereumNews.com.

Tether, a leading company in the cryptocurrency industry, has officially launched Alloy by Tether, a pioneering digital asset backed by Tether Gold (XAU₮). The development was carried out by Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V., both part of the Tether Group, aiming to combine the stability of a fiat currency with the security of gold. Innovative Tethered Assets Alloy by Tether introduces a new class of digital assets known as tethered assets, which aim to track the price of reference assets through stabilization strategies such as over-collateralization with liquid assets and secondary market liquidity pools. This approach ensures consistent value and stability between the reference asset and its tethered counterpart. First Token: aUSD₮ The first token in the Alloy by Tether lineup is aUSD₮, designed to track the value of one US dollar. Unique to aUSD₮ is its over-collateralization by Tether Gold (XAU₮), backed by physical gold stored in Switzerland. This allows users to engage in digital transactions, payments, and remittances with a currency that maintains the familiarity of the US dollar without selling their XAU₮. Alloy by Tether smart contracts are currently deployed on the Ethereum Mainnet. Users can mint aUSD₮ by depositing Tether Gold (XAU₮) as collateral through Ethereum-compatible smart contracts. These contracts ensure transparency by tracking all collateral and minted tokens, using Price Oracles to constantly evaluate the Mint to Value (MTV) ratio. Future Prospects and Institutional Integration Alloy by Tether is an open platform that allows the creation of various tethered assets, potentially including yield-bearing products. This technology offers a modern approach to asset management for institutions by providing a secure, gold-backed digital asset that can be integrated into portfolios. Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., authorized by the CNAD…

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Filed under: News - @ June 18, 2024 5:08 am