Tether has announced the launch of a new asset called Alloy, a smart contract-issued over-collateralized asset backed by Tether Gold.
Currently, the documentation for this product states that if the value of Alloy tokens you mint exceeds 75% of the value of the collateral deposited, then the smart contract will liquidate the position.
Tether Gold is an older gold-backed asset issued by the company that is pegged to the value of gold and is supposedly backed by gold held in Switzerland.
The normal USDT pegged to the value of the US dollar are also backed by gold owned by Tether, with its most recent attestation noting over $3.6 billion in ‘precious metals,’ which is described as ‘physical gold bars owned by the Tether International Limited.’
The value of the gold bars backing USDT is approximately seven times larger than the total amount of gold held for Tether Gold at the time of the last attestation.
Read more: A decade without an audit, Tether says it’s a new business
In some sense, Tether has consolidated its reserves across multiple stablecoins, including its Mexican Peso stablecoin, its offshore Yuan stablecoin, and its Euro stablecoins. This means they are also backed by this gold and Tether Alloy is the sixth gold-backed asset issued by the firm.
Tether further claims that Alloy will be “an open platform that” will allow the creation of assets backed by a variety of other assets, “including yield-bearing products.”
Tether chief exec Paolo Ardoino has already taken to X to warn users that it’s not doing an airdrop, following the emergence of a number of impostor websites.
Currently, the website for Alloy says the market capitalization is less than $4 and has 0.00 kilograms of gold backing it.
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Source: https://protos.com/tethers-new-asset-currently-backed-by-0kg-of-gold/