Tether shuts down Alloy platform and gold-backed aUSDT

Tether, the world's largest stablecoin issuer, is discontinuing its Alloy platform and the associated gold-backed stablecoin aUSDT, shifting its focus to products with greater market demand and liquidity. The company announced the decision on Wednesday, June 17, 2026, following a review of user activity and strategic priorities.

Effective immediately, the platform has been updated to prevent users from opening new positions or minting additional aUSDT. Existing holders have a three-month window to return their aUSDT tokens and reclaim the underlying Tether Gold (XAUT) collateral, with a final deadline of September 17, 2026. After that date, users will no longer be able to recover their XAUT through the Alloy platform.

Launched in June 2024, Alloy by Tether was an open platform that allowed users to deposit XAUT as collateral to mint aUSDT, a dollar-pegged stablecoin. The structure was designed to be overcollateralized, meaning the value of the locked gold always exceeded the amount of aUSDT issued, providing a buffer for price stability. Despite the innovative concept, adoption remained limited. At the time of the announcement, aUSDT had a market capitalization of approximately...