Tether has launched Alloy, introducing aUSD₮, a digital asset backed by Tether Gold (XAU₮) in excess. This innovative currency aims to merge the stability of the US dollar with the enduring value of gold. aUSD₮ is designed to maintain parity with one US dollar, underpinned by physical gold stored in Switzerland.

The over-collateralization of aUSD₮ by Tether Gold ensures that more gold value supports the tokens issued, acting as a safeguard against potential fluctuations in collateral value. This approach guarantees stability and dependability. The creation and management of aUSD₮ are facilitated through Ethereum-compatible smart contracts, ensuring transparency and security by monitoring collateral and token issuance using price oracles to evaluate the mint-to-value (MTV) ratio continuously.

aUSD₮ aims to offer the functional benefits of the US dollar, widely used in payments, trading, settlements, and savings, while incorporating gold's intrinsic advantages such as scarcity, low volatility, and preservation of purchasing power. Alloy by Tether is an open platform allowing the development of various Tethered Assets with diverse backing mechanisms, potentially including yield-bearing products. This flexibility enables Alloy to cater to different customer needs and regulatory standards.

Paolo Ardoino, CEO of Tether, stated, "Alloy by Tether is an open platform enabling users to create collateralized synthetic digital assets and will soon integrate into the new Tether digital assets tokenization platform, launching later this year."

Alloy represents a significant advancement in digital assets, empowering users to mint stablecoins directly via the Alloy platform. By combining dollar stability with gold security, Tether aims to deliver a trustworthy and adaptable digital currency for everyday transactions and asset management. This new category of tethered assets aims to redefine stability in the digital economy, offering a contemporary approach to managing and using digital assets.