Tether to announce gold-backed Alloy
Acting as a digital currency linked to physical gold, Alloy by Tether offers users and institutions a secure option for transactions and asset management. Users can create Alloy by Tether tokens using Tether Gold as collateral, ensuring a connection to the stability of gold. Alloy by Tether provides a modern approach to asset management by incorporating tethered assets into portfolios, combining the reliability of gold with the efficiency of digital assets.
Tether’s over-collateralized token Tether Gold (XAUt) will provide the ownership of physical gold but pegged to the U.S. Dollar. The new offering underscores Tether’s ambitions to diversify beyond its USDT stablecoin, which has a market capitalization of $112.5 billion and is pegged to the US dollar, backed by reserves of US Treasury bills, along with other securities and investments.