Stablecoin issuer Tether announced on Monday (17th) the launch of a new digital asset supported by Tether Gold (XAU₮) called Alloy by Tether, aiming to redefine stability in the digital economy by combining the advantages of stable accounting units and the security and reliability of gold.
Alloy by Tether introduces a new category of digital assets called “Tethered Assets,” designed to track the price of underlying assets through stable strategies such as excess collateral in liquid assets and secondary market liquidity pools, providing consistent value and stability between the underlying assets and their tethered counterparts.
aUSD₮ is the first token of Alloy by Tether. aUSD₮ aims to track the value of one US dollar, backed by excess collateral in Tether Gold (XAU₮), meaning it is supported by real physical gold stored in Switzerland. Users can use XAU₮ as collateral to create aUSD₮ tokens. Tether stated that:
The current Alloy by Tether smart contract has been deployed on the Ethereum mainnet, allowing users to deposit XAU₮ as collateral through a process managed by an Ethereum-compatible smart contract to mint aUSD₮. The aUSD₮ smart contract ensures transparency by tracking all collateral and minted tokens, and continuously evaluating the minting value ratio (MTV) using price oracles.
Tether CEO Paolo Ardoino explained on the X platform that aUSDT is a synthetic dollar over-collateralized by XAUt, while Alloy by Tether is an open platform that allows users to create collateralized synthetic digital assets, which will soon become part of the new Tether digital asset tokenization platform launching later this year.
