Tether introduces its new gold-backed digital asset called Alloy
Tether announced today its new digital asset backed by Tether Gold called “Alloy.” The product was created by Moon Gold NA and Moon Gold El Salvador, both part of the Tether Group, and it merges the stability of gold with the benefits of a digital currency.
The first token, aUSDT, is pegged to the US dollar and over-collateralized by Tether Gold, ensuring value stability. Users can mint aUSDT on the Ethereum mainnet using Tether Gold as collateral. The Alloy platform also allows for the creation of various tethered assets, expanding the possibilities for asset management.
“While the stabilization mechanism is different compared to traditional options like USDT, this innovative solution marks an exciting milestone,” said Paolo Ardoino, CEO of Tether. “We plan to make this innovative technology available in our upcoming digital asset tokenization platform as well.”
Tether Gold (XAUT) is a stablecoin that digitally represents one troy ounce (31.1 grams) of gold on the Ethereum blockchain. Additionally, the announcement highlights that Alloy is aimed at simplifying gold transactions for institutions, as well as its integration into investors’ portfolios.
Recently, Paolo Ardoino revealed that Tether is set to invest $1 billion in startups until 2025.
Furthermore, the company is expanding its focus out of crypto products, with efforts directed to educational content, artificial intelligence, data, and Bitcoin mining.
This news follows Tether’s record in quarterly profit registered in Q1, as reported by Crypto Briefing.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
All Eyes on Walsh: Will the "Central Bank Super Week" See a G7 Rate Hike Wave Next Week?
Amid rising inflation, geopolitical conflicts, and oil prices surpassing $100, G7 central banks are entering a crucial rate-setting week. Driven by higher-than-expected core inflation, the Federal Reserve is expected to implement its first rate hike in three years; the Bank of Japan is likely to raise rates to 1.25%, marking a 30-year high; meanwhile, the Bank of England, the European Central Bank, and the Bank of Canada are also reinforcing their hawkish stances. Global monetary policy is undergoing a major turnaround towards collective tightening.
Uniswap processes $70.6 billion in 30-day DEX trades, outpacing rivals
Morgan Stanley’s $50.6M BTC buying shields market – But rally to $82K has THIS hurdle
Will the Fed "continue raising interest rates"? Will the "tightening cycle" of the late 1980s be repeated?
The Citi report points out that the current macro environment is highly similar to the tightening cycle of 1988-1989, when the economy remained resilient and inflation pressures gradually accumulated, followed by a slowdown in economic activity before policies shifted to easing. During that tightening cycle, the Federal Reserve raised interest rates 16 times in a row.
Crypto prices
More
