Introduction to Alloy by Tether

Introducing Alloy by Tether, the first Tethered asset.

Introducing Alloy by Tether, the first Tethered asset.

Alloy by Tether marks a significant innovation by blending the trust and familiarity of transacting in fiat currencies with the enduring value of gold. Users can mint Alloy by Tether assets using Tether Gold (XAU₮) as collateral, creating digital assets such as for example the Alloy USD Tether token also known as aUSD₮. These assets are intended to provide the functional advantages of using the US Dollar as a unit of account - including its wide use in payments, trading, settlements and savings - while incorporating gold with its intrinsic benefits such as scarcity, low volatility, and the preservation of purchasing power into its stabilization mechanism.

Alloy by Tether is at the forefront of redefining innovation in the digital economy.

Alloy by Tether is intended to offer a stable value proposition in an otherwise volatile financial landscape. This stability is expected to be achieved by backing each unit of Alloy by Tether with Tether Gold, which represent ownership of physical gold securely stored in Switzerland. Switzerland's reputation for financial stability and asset security further enhances the reliability of Tether Gold. By using Tether Gold as collateral, Alloy by Tether positions itself as a digital asset that is stabilised by gold: the original scarce, low volatility way to preserve value. We believe this approach should instil confidence and a sense of reliability in our users.

At the core of our technology are smart contracts, which are designed to be Ethereum Virtual Machine (EVM) compatible. This includes chains such as Ethereum Mainnet, Polygon, Optimism, Arbitrum, BNB Chain and more.

The choice of Solidity as the programming language for Alloy by Tether's smart contracts is strategic. Solidity is the leading language for Ethereum smart contract development, known for its robustness and security features. By using Solidity, Alloy by Tether is not just versatile across different blockchains but also maintains the highest standards of security and functionality.

For those new to the world of Web3 and blockchain, understanding these components is crucial. Smart contracts can be thought of as self-executing contracts where the terms of the agreement between buyer and seller are directly written into lines of code. They run on the blockchain, can be immutable, and distributed, meaning they run as programmed without downtime, censorship or fraud.

This technology forms the backbone of Alloy by Tether and aUSD₮ tokens.