Stablecoin firm Tether has announced the launch of its new digital asset, ‘Alloy by Tether,’ a tethered asset to the US dollar.
A new Tether stablecoin has lately become the talk of the crypto industry. The stablecoin issuer has launched ‘Alloy by Tether,’ a stablecoin pegged to the US dollar and backed by Tether Gold. Alloy (aUSDT) is going to be a tethered asset and a synthetic dollar, which means it will mimic the USD’s price without getting its direct backing.
The firm announced the launch of the new Tether stablecoin through a press release. At the same time, Tether defined tethered assets as price trackers of other assets through stabilization mechanisms. Alloy will allow its holders to gain exposure to gold while having access to a stablecoin that firmly follows the USD’s fundamentals. Users can mint the new Tether stablecoin on the Alloy by Tether platform.
Meanwhile, Tether’s press release stated, “This technology provides a modern approach to asset management for institutions as well by offering a secure, gold-backed digital asset that can be integrated into portfolios.” It named various firms that will handle the issuance and management of the stablecoin.
Tether CEO Paolo Ardoino also noted the potential of the innovative stablecoin. He said the product will soon be available in their upcoming digital asset tokenization platform.
A few months ago, Tether had also launched an educational program for crypto and blockchain enthusiasts. Calling it the Tether Edu program, the firm aimed to use the program to expand awareness about crypto.
At the same time, the popularity of stablecoins has been steadily rising in recent years. Governments worldwide have noted this from a regulatory perspective. For instance, the US is considering a new stablecoin law.
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