Tether is shutting down its gold-backed stablecoin platform, Alloy by Tether. The company stated that due to persistently weak demand since its launch in 2024, the platform will cease operations. Existing aUSDT users must redeem their assets and retrieve their collateral by September 17, 2026; otherwise, they will no longer be able to retrieve their assets through the platform.
aUSDT's size has always been limited.
Alloy by Tether launched in June 2024 was designed to allow users to deposit XAUT (Tether's gold token) and then mint aUSDT, a synthetic asset pegged to the US dollar. The product attempted to combine gold collateral with a stable dollar asset.
However, in terms of existing scale, this product has consistently failed to establish a significant user base. The article cites Alloy data stating that aUSDT currently has a market capitalization of approximately $1.27 million, corresponding to 14.73 kilograms of gold as collateral, worth about $2.2 million. In comparison, the circulating supply of USDT exceeds $186 billion, making aUSDT still a fringe product.
Redemption must be completed before September 17th.
The company stated that with the closure process initiated, the platform has ceased minting new aUSDT and will no longer open new positions. For the next approximately three months, existing users can still redeem their aUSDT and withdraw the corresponding XAUT collateral.
For holders, the most crucial information is the deadline. Tether stated that if users do not complete the transaction by September 17, 2026, they will lose the ability to retrieve their collateral through the platform.
Resources shift to USDT and XAUT
Tether attributed this adjustment to a reallocation of resources. The company stated that it will subsequently allocate more resources to USDT, XAUT, and faster-growing ecosystem products.
The article also mentions that this is not the first time Tether has scaled back niche stablecoin products. The company had previously stopped supporting the euro-denominated stablecoin EURT. Overall, Tether is reducing its less adopted product lines and refocusing its efforts on stablecoins and tokenized assets, which have more clearly defined demand.
