Skip to content

Tether launches gold-backed, US dollar-pegged stablecoin ‘Alloy’

Tether launches gold-backed, US dollar-pegged stablecoin 'Alloy'

Tether, the company behind the $112 billion market cap USDT, has introduced a new gold-backed stablecoin pegged to the U.S. dollar. The new stablecoin, called Alloy (aUSDT), marks Tether’s first foray into tethered assets and can be minted on the recently launched Alloy by Tether platform.

According to Tether, Alloy is designed as an open platform for creating collateralized synthetic digital assets. The platform’s first asset is aUSDT, a token whose price is pegged to the U.S. dollar.

Investors can mint aUSDT by depositing Tether’s XAUt as collateral. XAUt, with a market capitalization of $570 million, is allegedly backed by physical gold stored in Switzerland

The aUSDT token targets users interested in using cryptocurrency for payments and remittances without having to liquidate their gold-backed tokens. To ensure security, positions must be overcollateralized, allowing users to mint new tokens up to 75% of the collateral value.

The issuance of these assets will be managed by Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., which are regulated under El Salvador’s National Commission of Digital Assets (CNAD).

Tether’s strategic expansion

This new offering follows Tether’s broader strategy to diversify its services beyond USDT, the largest stablecoin by market value and a cornerstone of the digital asset market. 

Last year Tether expanded into Bitcoin (BTC) mining and artificial intelligence (AI) through a subsidiary jointly owned by BTC miner and data cloud provider Northern Data Group (NB2).

The Alloy platform aims to facilitate the creation of digital versions of a range of assets and may also introduce yield-bearing products, broadening its appeal to investors seeking reliable and innovative financial options.

Comparing collateralization strategies

Tether’s USDT token uses a large reserve of cash and short-term U.S. T-bills to back the token, generating profits from the interest paid on the bills. USDT is also overcollateralized with an additional $3.7 billion in gold and $5.4 billion in Bitcoin, according to the firm’s Q1 figures.

In contrast, aUSDT is overcollateralized by Tether Gold (XAUt), making it a synthetic dollar designed to replicate the value and functionality of the US dollar without direct dollar backing. Overcollateralization provides a buffer against price drawdowns of gold, ensuring the token maintains its dollar peg.

By leveraging gold-backed assets to create synthetic digital dollars, Tether is enhancing its utility for investors and diversifying its offerings in the digital asset market.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.