Tether Launches Alloy, a New Gold-Backed Stablecoin Pegged to the U.S. Dollar, Marking the First Phase in Its Real-World Asset Tokenization Platform

Tether is introducing a stablecoin supported by gold and linked to the U.S. dollar. The issuer declared it the first tethered asset. The new coin, Alloy (aUSDT), is mintable on the new Alloy by Tether platform.

Stablecoin issuer Tether has introduced a gold-backed stablecoin pegged to the U.S. dollar, kicking off the first phase of its real-world asset tokenization platform.

Tether Introduces Alloy, a Gold-Backed Stablecoin on New Platform, Boosting Digital Asset Security, Utility

In a recent Cointelegraph report, Tether is launching a stablecoin backed by gold and pegged to the U.S. dollar, which the issuer claims is the first tethered asset. The new coin, Alloy (aUSDT), is mintable on Tether’s new Alloy platform.

The company stated that Alloy will be overcollateralized by Tether Gold (XAUt), a token that is pegged to the U.S. currency and provides ownership of physical gold. The new token is a synthetic dollar, as it is designed to mirror the value and function of the U.S. dollar without being directly backed by it, as the term defines it.

Tethered assets are "digital assets that aim to track the reference price of another asset through various stabilization mechanisms," Alloy explained in an X post, adding:

“Alloy by Tether provides long-term holders the opportunity to maintain exposure to gold, while in parallel obtaining a dollar-referenced Tethered Asset for payments and day-to-day economy.”

The organization also mentioned in the thread that the platform could create other tethered assets, like yield-bearing products.

The synthetic dollar can be minted by depositing XUSDT, using a smart contract and price oracles. As a result, users can maintain their gold-backed Tether assets while making transactions with USD.

Moon Gold and Moon Gold El Salvador, subsidiaries of Tether, created aUSDT. Paolo Ardoino, Tether’s CTO, announced that Alloy by Tether will be integrated into a real-world asset tokenization platform launching later this year.

Tether's Alloy Enters a Competitive Synthetic Currency Market, Praised for High Liquidity, Strategic Control

Tether's aUSDT is not the first synthetic currency. In August 2022, Galoy introduced Stablesats, a synthetic dollar on the Lightning Network, powered by Bitcoin.

However, the synthetic dollar gained prominence as a promising asset form when Ethena Labs' startup launched its Ether-backed, dollar-pegged USDe in February. The launch was met with some skepticism. In June, an algorithmically balanced synthetic dollar was introduced as a variation on the concept called Asymp.

One analyst has viewed aUSDT favorably compared to USDe and other stablecoins due to Tether's high liquidity and "greater decision-making leeway and less principal-agent risk" as a centralized entity.

Tether has credited USDT holders with a bonus at a 2:1 ratio and has allocated 10 million aUSDT to enhance the transaction on the new asset.

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News source：https://www.kdj.com/cryptocurrencies-news/articles/tether-launches-alloy-gold-stablecoin-pegged-dollar-marking-phase-real-asset-tokenization-platform.html

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