Tether Launches Alloy (aUSDT)

June 19, 2024

Overview

Tether has launched Alloy (aUSDT), a new gold-backed stablecoin pegged to the U.S. dollar, overcollateralized by Tether Gold (XAUt), aiming to maintain stability while integrating with asset tokenization platforms.

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Tether, the company behind the top stablecoin (USDT) just introduced a new gold-backed stablecoin pegged to the U.S. dollar called Alloy (aUSDT). Alloy will be overcollateralized by Tether Gold (XAUt), representing physical gold ownership, but its value will follow the U.S. dollar without direct backing.

Tether's USDT token is backed by a reserve of cash, short-term U.S. T-bills, gold, and Bitcoin, generating profits from the interest paid on the bills. aUSDT will be overcollateralized by Tether XAUt, which was designed to replicate the value and functionality of the US dollar without direct dollar backing and use gold to provide a buffer against price drawdowns to maintain the dollar peg. 

Tether’s CEO also announced that Alloy by Tether will be integrated into a real-world asset tokenization platform later this year. 

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2024