Tether Retires aUSDT, Citing Demand—XAUT Stays, CNHT and EURT Already Ghosted 🪙

Tether is winding down Alloy by Tether and its gold-backed, overcollateralized aUSDT stablecoin to redirect resources toward products with stronger user demand and deeper liquidity, the company announced Wednesday. The decision follows an internal review of user activity, market demand and the company's "broader priorities," Tether said, adding that it will focus on areas showing "stronger user demand, deeper liquidity and broader long-term market opportunity," including its gold-backed digital asset XAUT and other core products.

The wind-down will be carried out in phases. Effective immediately, users can no longer open new positions or mint new aUSDT. Existing holders have three months to return their aUSDT and reclaim their XAUT collateral, with a final cut-off date of Sept. 17. Alloy by Tether, announced in June 2024, allows users to deposit XAUT as collateral to mint aUSDT on Ethereum, with the locked XAUT value exceeding the value of aUSDT issued. The product currently has a market capitalization of $1.2 million and is backed by 14.73 kilograms of gold worth approximately $2.2 million, according to Tether.

XAUT, Tether's standalone gold-backed token, remains active with a market capitalization of $3 billion and is backed by 22,169 kilograms of physical gold. Its market cap rose earlier this year when gold prices hit an all-time high of just over $5,300 per ounce, though it has since retreated 19%. In February, Tether also acquired a 12% stake in precious metals platform Gold.com for $150 million, with plans to integrate XAUT into the platform.

aUSDT is not the only Tether product discontinued this year. In February, the company announced it was ending its Chinese yuan stablecoin, CNHT, citing "evolving market conditions, low interest in the product, and limited sustained community demand." In November, Tether wound down its euro stablecoin, EURT, pointing to European regulatory issues and a pivot toward initiatives such as Hadron, its asset tokenization platform launched in 2024.

While stablecoins remain Tether's core business, the company has expanded into Bitcoin mining infrastructure, artificial intelligence, cloud computing and robotics. Most recently, Tether led German tech company NEURA's $1 billion funding round on June 11, underscoring its continued investment in technology beyond stablecoin issuance.