Tether Rolls Out a Gold-backed Stablecoin

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Tether has announced the introduction of a new stablecoin called Alloy, which will be backed by gold and pegged to the US dollar.

This is the first time Tether has launched a tokenized asset and it will be available on the Alloy by Tether platform.

The company stated that the new token, aUSDT, will be collateralized by Tether Gold (XAUt), a token linked to physical gold ownership. However, aUSDT will maintain a 1:1 peg to the US dollar, making it a synthetic dollar and not directly backed by it.

According to Alloy, tethered assets are digital assets that use various stabilization mechanisms to track the price of another asset. This allows long-term holders to maintain exposure to gold while also having access to a dollar-denominated token for daily transactions.