Tether is shutting down Alloy by Tether, its gold-backed stablecoin platform, after the product struggled to attract users. Existing users now have until Sept. 17, 2026, to redeem their collateral before access is permanently lost. The move comes as Tether shifts its focus back to its biggest products, USDT and XAUT.
When Alloy launched in June 2024, Tether hoped to create a new category of digital assets. The platform allowed users to deposit XAUT, Tether’s gold-backed token, and mint aUSDT, a synthetic dollar designed to remain stable while being backed by physical gold.
On paper, it combined two popular assets, gold and dollars. In reality, demand never arrived.
In a press release, Tether said the decision to shut down aUSDT came after evaluating user adoption, market demand, and keeping in mind the company’s long-term business growth.
According to Alloy data, aUSDT’s market capitalization stands at just $1.27 million, backed by 14.73 kilograms of gold worth roughly $2.2 million. Compared with Tether’s flagship USDT, which now has more than $186 billion in circulation, the platform remained a niche product.
Most investors looking for dollar exposure already use USDT. Meanwhile, investors seeking gold exposure generally prefer holding XAUT directly.
As a result, aUSDT sat in the middle of two much larger markets without establishing a clear user base.
However, this is not the first product Tether has retired. The company previously ended support for its euro-backed stablecoin EURT as part of a broader strategic shift.
Instead of maintaining smaller products with limited adoption, Tether appears to be concentrating on areas where demand is growing rapidly, including USDT, tokenized assets, and XAUT.
The most important detail for existing aUSDT holders is the redemption deadline. Teather says the existing users now have until Sept. 17, 2026, to redeem their collateral before access is permanently lost.
As part of the wind-down process, Tether has already stopped new aUSDT minting and the opening of new positions. Meanwhile, existing users will still be able to redeem their aUSDT and withdraw their XAU₮ collateral over the next three months.
However, Tether warned that users who fail to redeem before the deadline will no longer be able to recover their collateral through the platform.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Story Highlights Litecoin price today Price predictions for 2026 range from $100 to $150.00. Long-term…
Story Highlights The live price of the Ethena token is . A structural breakout and…
Ethereum has spent the past several weeks consolidating near the $1,400-$1,800 range following a drop…
Ethena price is showing early signs of a potential trend reversal after staging a sharp…
Federal Reserve Chair Kevin Warsh held his first press conference after leading his first FOMC…
Crypto markets have been choppy lately, but Anthony Scaramucci remains confident about Bitcoin’s long-term outlook.…
