Tether shuts down Alloy and aUSDT, focuses on XAUT

Tether is shutting down Alloy by Tether and aUSDT, giving users until September 17, 2026, to redeem assets, as it shifts focus to XAUT and core products with higher demand.

Tether has announced the phased shutdown of its Alloy by Tether platform and the gold-backed, over-collateralized stablecoin aUSDT. This decision comes after a review of user activity, market demand, and strategic priorities. Tether will now focus on products with stronger demand, deeper liquidity, and greater long-term market opportunities, especially its gold-backed token XAUT and other core offerings. The wind-down process begins immediately, with new positions and minting of aUSDT halted. Existing users have until September 17, 2026, to redeem their aUSDT for XAUT. After this date, recovery of XAUT through the platform will no longer be possible. Launched in 2024, aUSDT currently has a market capitalization of about $1.2 million, backed by 14.73 kilograms of gold. In contrast, XAUT, Tether's primary gold-backed token, has a market cap of $3 billion, backed by 22,169 kilograms of physical gold. This move aligns with Tether's strategy to concentrate resources on more liquid and in-demand assets.