Cryptocurrency industry giant Tether has officially launched Alloy by Tether, a new asset backed by Tether Gold. According to the company's blog post, Alloy by Tether aims to redefine stability in the digital economy by combining the benefits of a stable economic unit with the security and reliability of gold.
Alloy by Tether introduces a new category of digital assets known as pegged assets. The first token in the series will be aUSD₮, a digital coin designed to track the value of a US dollar. aUSD₮ is over-collateralized by Tether Gold (XAU₮), which is purportedly backed by real physical gold stored in Switzerland.
Users will be able to create aUSD₮ tokens using Tether Gold (XAU₮) as collateral. Currently, Alloy by Tether smart contracts run on the Ethereum Mainnet and users can mint aUSD₮ by depositing Tether Gold (XAU₮) as collateral through a process governed by Ethereum-compatible smart contracts.
