The new synthetic dollar is the first step in the rollout of a real-world asset tokenization platform, said Tether.
Tether is introducing a gold-backed stablecoin pegged to the United States dollar. It is the first tethered asset, the issuer declared. The new coin is called Alloy (aUSDT) and is mintable on the new Alloy by Tether platform.
According to the company, Alloy will be overcollateralized by Tether’s gold-pegged XAUT — a token that provides ownership of physical gold — but pegged to the U.S. dollar. By definition, the new token is a synthetic dollar, which is designed to mimic the value and functionality of the USD without being directly backed by it.
Alloy explained in an X post that tethered ssets are “digital assets that aim to track the reference price of another asset through different stabilisation mechanisms.” Further, it said: