Tether will wind down its gold-backed aUSDT stablecoin and Alloy platform, giving holders until Sept. 17 to redeem tokens for XAUT collateral.
Tether is closing the door on its gold-backed aUSDT (aUSDT) stablecoin and the platform that issues it, Alloy by Tether, after roughly two years on the market. The company announced the move on June 17 following a review of user activity, market demand, and its broader business priorities.
The shutdown will roll out in phases. The first phase, which started immediately, blocks users from opening new positions or minting additional aUSDT. Existing holders have until Sept. 17 to return their aUSDT and reclaim the XAUT (XAUT) collateral backing it, after which the platform will no longer process redemptions.
aUSDT launched in June 2024 as an overcollateralized stablecoin built on Ethereum smart contracts. Users locked XAUT as collateral to mint it, with the value of gold held always exceeding the aUSDT supply in circulation, a structure meant to preserve stability. The setup gave holders dollar-like liquidity without forcing them to sell their gold position outright.
XAUT price chart (24 hours). Source: CoinMarketCap
At the time of the announcement, aUSDT had a market cap of roughly $1.2 million, backed by about 14.73 kilograms of gold, worth close to $2.2 million.
‘Stronger Demand’ Drives Tether’s Resource Shift
Tether said it now wants to direct resources toward areas showing stronger demand, deeper liquidity, and broader long-term opportunity instead, naming XAUT specifically alongside other core products in its lineup.
XAUT remains a far larger part of that lineup, with a market cap near $3 billion, backed by 22,169 kilograms of physical gold. Its valuation jumped earlier this year when gold prices touched an all-time high of roughly $5,300 per ounce, though the token has since pulled back roughly 19% from that level.
Related article: Tether and Fasset Launch XAUT Rewards Visa Card
Tether’s Pattern of Product Cuts Continues
Tether has trimmed its product roster several times in the past year. It discontinued its Chinese yuan stablecoin, CNHT, in February, citing limited demand, and it ended its euro stablecoin, EURT, in November, pointing to regulatory friction in Europe. The company has also pushed further into ventures outside stablecoins, including a $1 billion funding round it led for German robotics firm Neura on June 11.
Not every move this year has been a wind-down. In February, Tether bought a 12% stake in precious metals platform Gold.com for $150 million, with plans to integrate XAUT into the platform. In May, it unveiled plans for a new stablecoin called GELT, pegged to the Georgian lari, developed in partnership with the government of Georgia.
Read more: Bitcoin Miners Are Pivoting to AI: What Does This Mean for BTC?
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
