Alloy Unveils New Stablecoin Platform Backed by Tether Gold

Tether has launched a new platform called Alloy, which allows users to mint stablecoins like aUSDT, pegged to the US dollar, by depositing Tether Gold (XAUT) as collateral. Alloy aims to combine the stability of the US dollar with the security of gold, creating over-collateralized digital assets. Users can mint these assets by depositing XAUT, ensuring the minted value does not exceed 75% of the collateral. If this threshold is breached, the system automatically liquidates the position. Tether Gold, backed by physical gold stored in Switzerland, serves as the backbone of Alloy, offering a secure way to hold gold digitally. The asset issuance on Alloy is managed by Moon Gold entities regulated in El Salvador, ensuring compliance and security.