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Tether launched a new product

Tether is launching a new digital asset called Alloy, backed by the physical gold Tether Gold (XAUt).

Tether’s latest product, Alloy, represents a new category of digital assets, according to a press release.

What kind of Alloy from Tether

Alloy is based on a new category of digital assets – “tethered assets”. Their value is tied to the underlying assets using Tether Gold as collateral.

“Alloy is designed to redefine stability in the digital economy by combining the benefits of a stable unit of account with the safety and reliability of gold,” the issuer said.

The first token in Tether’s Alloy line is aUSDT. The coin is pegged to the US dollar and is over-backed by XAUt. In other words, the price of aUSDT is backed by real physical gold, which the issuer stores in Switzerland.

aUSDT is a derivative asset that can be used without having to sell Tether Gold. Users can issue a token by staking XAUt to a smart contract as collateral.

Initially, aUSDT will be available only on the Ethereum network, the developers noted.

“We are pleased to announce the launch of Alloy, a class of digital assets backed by gold and pegged to a fiat currency reference. While the stabilization mechanism is different from traditional options such as USDT, this innovative solution marks an exciting milestone and we look forward to seeing how it interacts with the rest of the market,” said Paolo Ardoino, CEO of Tether.

Ardoino also added that the company plans to implement Alloy on its upcoming real world asset (RWA) tokenization platform. However, he did not name the exact launch date of the new site.

Previously, Tether invested $18.7 million in the XREX cryptocurrency exchange. As part of the collaboration, the companies plan to increase financial inclusion in emerging markets and improve cross-border payments in the USDT stablecoin.

Prior to this, the issuer also invested $100 million in Bitdeer Technologies Group, an American bitcoin mining company. Tether continues to pursue its policy of diversifying its business and supporting various technology industries.

Source: Cryptocurrency

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