Tether puts Alloy on a gold leash, walks aUSDT to the exit 🪙

Tether is winding down Alloy by Tether and its gold-backed, overcollateralized aUSDT stablecoin, a dollar-pegged token built on top of Tether Gold (XAUT) using Ethereum smart contracts, after roughly two years in market. The company announced the "strategic changes" on Wednesday, citing a review of user activity, market demand, and "broader priorities," and said it will redirect resources to areas showing "stronger user demand, deeper liquidity and broader long-term market opportunity," including XAUT and other core products across its ecosystem.

Under the phased shutdown, the first phase began immediately by blocking new positions and the minting of new aUSDT. Existing holders have three months to return their aUSDT and reclaim their XAUT, with a hard cut-off date of September 17, 2026, after which users will no longer be able to recover their XAUT through the Alloy platform. Alloy by Tether, announced in June 2024, currently has a market capitalization of $1.2 million and is backed by 14.73 kilograms of gold worth around $2.2 million, according to Tether. The product let users deposit XAUT as collateral to mint aUSDT, with the value of XAUT locked exceeding the value of aUSDT issued, similar to overcollateralized crypto-backed stablecoins used in decentralized finance.

XAUT itself remains active, with a market capitalization of $3 billion backed by 22,169 kilograms of physical gold, according to the company. 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%. Tether expanded its precious-metals footprint in February by purchasing a 12% stake in Gold.com for $150 million, with plans to integrate XAUT into the platform.

aUSDT is not the only product Tether has retired in 2026. In February, the company discontinued its Chinese yuan-pegged CNHT, citing "evolving market conditions, low interest in the product, and limited sustained community demand" relative to other supported assets. In November, it wound down its euro-pegged EURT, pointing to European regulatory issues and a focus on initiatives such as Hadron, its asset tokenization platform launched in 2024.

Beyond stablecoins, Tether has continued to invest in adjacent technology, including Bitcoin mining infrastructure, artificial intelligence, cloud computing, and robotics. Most recently, the company led German tech company NEURA's $1 billion funding round on June 11.