Tether, the company behind the largest stablecoin by market capitalization, announced the launch of a new digital asset backed by real gold. This development marks an important milestone for Tether, which is expanding its offering beyond simply issuing USDT, the dominant stablecoin in the crypto market.
Tether launches Alloy, the new gold-backed stablecoin!
The new product, called “Alloy by Tether”, is a crypto platform for creating collateralized synthetic digital assets. Alloy (aUSDT) is a gold-backed stablecoin. The latter is designed to mimic the value and functionality of the US dollar without being directly backed by it. According to Tether, Alloy will be collateralized by Tether Gold (XAUt), a token representing ownership of physical gold, while being pegged to the US dollar.
The Alloy by Tether platform was designed to join the game of tokenizing real-world assets. aUSDT was the first product in this new branch. Crypto users can mint aUSDT by depositing XAUt via smart contract and price oracles. Which allows them to transact with aUSDT while keeping their gold-backed Tether assets.
One more innovation in the crypto universe
This initiative comes after Tether's record $4.5 billion profit in the first quarter of 2024! And this, mainly thanks to Bitcoin and gold. The introduction of aUSDT provides both stability and flexibility for digital asset holders. Tether indicated that other related assets, including yield-generating products, could also be developed on the Alloy crypto platform.
In summary, Tether introduces a major innovation in the crypto space with Alloy by Tether. By combining the stability of gold with the benefits of a digital currency, Tether is paving the way for a new era of digital finance! Where the security of traditional assets meets the flexibility and accessibility of blockchain technologies. With Alloy, Tether continues to strengthen its leadership position in the stablecoin and asset tokenization industry.
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