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The Salvadoran digital assets ecosystem continues to set milestones in its evolution and development. The National Commission of Digital Assets (CNAD) has announced the issuance of the first registered, regulated, and supervised stablecoin in El Salvador.
This milestone is the result of the meticulous and rigorous effort and expertise of the CNAD. After only 300 days since its inception, the CNAD has issued specific regulations for the issuance and supervision of stablecoins in El Salvador, fulfilling its mandate to regulate and oversee the country’s digital assets ecosystem.
The stablecoin, named Alloy by Tether “aUSDT,” is issued by the companies Moon Gold El Salvador, S.A. de C.V., and Moon Gold NA, S.A. de C.V. These companies were registered as Stablecoin Issuers on Thursday, June 20, under registration entries EME-0001 and EME-0002, respectively, in the corresponding Public Issuers Registry managed by the CNAD.
Alloy by Tether “aUSDT” is pegged to the United States dollar and backed by the value of gold. It has been available since June 17, 2024, on the platforms of Moon Gold NA, S.A. de C.V., and Moon Gold El Salvador, S.A. de C.V., companies registered as digital assets service providers and supervised by the National Commission of Digital Assets. The token is available on the Alloy by Tether website at https://alloy.tether.to. Moon Gold El Salvador, S.A. de C.V., and Moon Gold NA, S.A. de C.V., are authorized by the CNAD as digital service providers with registration codes PSAD-0021 and PSAD-0022, respectively.
A stablecoin is a digital asset whose value is pegged to another asset class, such as a fiat currency or gold, which helps stabilize its price. In the case of Alloy by Tether “aUSDT,” it is pegged to the United States dollar and also backed by the strength of gold. This provides greater stability in the digital world and is its main benefit. Since it is indexed to the price of gold, when the price of gold increases, the value of the stablecoin automatically increases, generating wealth for its holders.
Other benefits of this token include greater stability in the value of the currency, which favors economic growth; greater control over monetary issuance, which prevents inflation; and the facilitation of commercial exchanges, thereby supporting international trade. Additionally, the stablecoin can be used for loans of up to 75% of its total value, providing greater liquidity and the advantage of not paying interest on the loan, making it an excellent option for financing projects that stimulate the economy.
In this context, the CNAD, as the entity responsible for supervising compliance with the applicable regulations for digital assets in El Salvador, will carry out the corresponding monitoring and continuous supervision of the stablecoin issuing company. The CNAD is the only independent entity in the world qualified to issue and apply the relevant regulations to these activities within the digital ecosystem, a task it performs with the quality, transparency, security, and professionalism that characterize it as a regulatory and supervisory entity.
