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- Tether begins Alloy shutdown while ending support for aUSDT today.
- Users have three months remaining to reclaim locked gold collateral.
- Company redirects resources toward XAUT and future stablecoin projects.
Tether has officially started the process of shutting down its gold-backed stablecoin platform Alloy and stopped accepting new aUSDT issuance, moving the stablecoin closer to its end. The transition comes after an internal review of the other parts of the company’s digital asset ecosystem and opportunities were deemed stronger. The company has declared that users are no longer able to open new jobs or mint more aUSDT. Previous users, on the other hand, have to go through a process to redeem their stablecoins and withdraw their collateral before the platform will be completely shut down.
The move aligns with Tether’s goal of concentrating its resources on its products with the highest level of user demand, liquidity, and market uptake, it said. This will focus the company’s efforts more on Tether Gold (XAUT) and on its core product offerings. Current users will get until Sept. They will be able to buy back their aUSDT tokens and get their XAUT back as collateral at 17, 2026. But those who don’t finish the redemption process on time will not be able to get those assets back via Alloy by Tether.
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Tether Closes the Chapter on Its Gold-Backed Stablecoin Platform
Alloy by Tether was established in 2024 with the goal of becoming an open platform for the creation of digital assets supported by Tether Gold. It was the flagship aUSDT that experienced a dollar peg but was not backed by the traditional fiat currency. The model requires a user to deposit XAUT as a collateral to mint a token aUSDT. Furthermore, the redemption value of the gold deposited has always been more than the value of the stablecoins issued, in order to ensure stability.
Even though it is a very specific design, its uptake was relatively low. According to data released on the project’s website, there are about $1.27 million worth of aUSDT tokens circulating in the market. At the same time, the stablecoin is supported by approximately 14.73 kilograms of gold worth approximately $2.2 million. Collaterals were healthy but it did not gain much traction in the larger stablecoin market. Tether decided that further development of Tether’s Alloy product was no longer a priority for the company.
Stablecoin Strategy Continues to Evolve
Tether’s decision to close Alloy isn’t the first change in the company’s stablecoin lineup. In November 2025, Tether officially halted the redemption process for EURT, the euro-pegged stablecoin.EURT’s redemption process was previously discontinued by Tether in November 2025. This choice also mirrored the shifting market conditions and priorities for products. Further, the latest shift implies that the company is growing more selective on which projects it will support longterm with its investments and operations.
Meanwhile, Tether keeps on venturing into new markets. The company announced in May plans to launch the stablecoin GELT, pegged to the Georgian lari, with the participation of the Georgian government. The closure of Alloy by Tether thus points to a larger initiative to rationalize operations and move towards more robustly adopted products within the digital asset market. This represents the end of a niche gold-backed stablecoin venture by Tether, which has recently closed out aUSDT and opted to close Alloy by Tether.
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