Tether winds down gold-backed derivative stablecoin aUSDT
Tether is winding down Alloy by Tether and its gold-backed aUSDT after two years, citing a review of user activity, demand, and broader priorities. It is stopping new positions and new minting immediately, and holders have until Sept. 17 to redeem aUSDT for XAUT. The shift reflects a move toward products with stronger demand, deeper liquidity, and better long-term prospects, especially Tether Gold (XAUT) and other core ecosystem offerings. Alloy let users deposit XAUT as collateral to mint an overcollateralized dollar-like token, giving them liquidity without selling gold exposure. The product has only about $1.2 million in market cap, while XAUT remains much larger at roughly $3 billion. Tether has also been pruning other underused or problematic products, including CNHT and EURT, while continuing to expand into areas like tokenization, robotics, AI, cloud computing, and Bitcoin mining.
