Tether launched Alloy, a gold-backed stablecoin pegged to the US dollar. Alloy (aUSDT), Tether’s first tethered asset, can be minted via their new platform.
Alloy is backed by Tether Gold (XAUt), representing physical gold ownership, and maintains its value relative to the US dollar through over-collateralization and secondary market liquidity.
Investors can mint Alloy by depositing Tether Gold as collateral, with positions overcollateralized up to 75% of the collateral value. Moon Gold NA and Moon Gold El Salvador will manage Alloy’s issuance under El Salvador’s National Commission of Digital Assets (CNAD).
Tether is diversifying its services beyond USDT, the largest stablecoin by market value, by introducing a new offering and investing in bitcoin mining.
This launch follows a dispute in May between Tether’s CEO and Ripple’s CEO, with Ripple hinting at launching its stablecoin.
Image Credit: Pixabay
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