Tether has announced that it is shutting down Alloy by Tether and its gold-backed stablecoin, aUSDT, after reviewing user activity, market demand, and the company’s future priorities.
The decision marks the end of a product that was launched in June 2024. Alloy allowed users to deposit Tether Gold (XAUT) as collateral and create aUSDT, a dollar-pegged stablecoin backed by gold. The idea was to give users access to dollar liquidity without requiring them to sell their gold holdings.
Tether said support for the product will be phased out immediately. New positions can no longer be opened, and no new aUSDT tokens will be issued.
Existing users have until September 17, 2026, to redeem their aUSDT and recover their XAUT collateral. After that date, users who have not completed the process may no longer be able to recover their gold through the Alloy platform.
According to the company, the project provided valuable insights into demand for gold-backed digital assets, collateralized products, and tokenized real-world assets. However, Tether concluded that its resources would be better focused on products with stronger demand, greater liquidity, and larger long-term growth opportunities.
Despite closing Alloy, Tether emphasized that it remains committed to its gold-backed token XAUT. Unlike aUSDT, XAUT directly represents ownership of physical gold and remains a key part of the company’s strategy.
The difference in scale is significant. Tether said XAUT has a market value of around $3 billion and is backed by more than 22,000 kilograms of physical gold. In comparison, Alloy’s market value stood at roughly $1.2 million and was backed by about 14.7 kilograms of gold.
The closure is part of a broader effort by Tether to streamline its product lineup. Earlier this year, the company also discontinued support for its Chinese yuan stablecoin CNHT and its euro-pegged stablecoin EURT, citing limited demand and changing market conditions.
Going forward, Tether plans to concentrate on its core products, including USDT and XAUT, while continuing to invest in larger growth areas such as tokenization, artificial intelligence, cloud technology, robotics, and Bitcoin mining.
The company has also expanded its presence in emerging technologies and digital infrastructure through new investments and partnerships, signaling a shift toward products and services that offer greater scale, stronger adoption, and clearer long-term opportunities.
For users of Alloy and aUSDT, the key takeaway is simple: redeem holdings and withdraw collateral before the September 17 deadline to avoid losing access to funds held on the platform.
