Tether Unveils Alloy: The Innovative New Asset Class Backed by Real Physical Gold

Tether, a well-known stablecoin issuer, has recently introduced a new asset class called “Alloy” that is backed by Tether Gold. The goal of Alloy is to provide stability and value consistency in the digital economy. The token combines the features of a stable unit of account with the security of gold, ensuring stability in a volatile market.

Tether CEO Paolo Ardoino expressed excitement about the innovative solution and noted that it represents a new milestone in the market. Alloy is backed by Tether Gold (XAU₮), which provides ownership of real physical gold stored in Switzerland.

The first token in the Alloy lineup is aUSD₮, which is pegged to the value of one U.S. dollar and over-collateralized by Tether Gold. This means that investors can hold their gold digitally while still maintaining ownership of real physical gold. There are already five addresses holding aUSD₮ tokens, and users can create them by using Tether Gold as collateral through Ethereum-compatible smart contracts.

Tether continues to expand its line of tokenized assets with the introduction of Alloy, providing investors with yet another way to hold their assets digitally while still maintaining ownership of real physical gold.