Tether to Shut Down Alloy Platform and End aUSDT Support

Tether, the issuer of the world’s largest stablecoin USDT, has announced the gradual shutdown of Alloy by Tether and the discontinuation of support for aUSDT, its gold-backed dollar-pegged stablecoin. The decision follows a review of user activity, market demand, and the company’s broader strategic priorities.

As part of the wind-down process, Tether has immediately stopped new aUSDT minting and disabled the creation of new positions on the Alloy by Tether platform. Existing users, however, will be given a three-month transition period to redeem their holdings. During this time, customers can return aUSDT and withdraw the underlying Tether Gold (XAUT) collateral in accordance with the platform’s terms.

Tether warned that users must complete the redemption process before September 17, 2026. After that date, aUSDT holders will no longer be able to recover their XAUT through the Alloy platform. The company stated that the shutdown will be carried out in stages to ensure a smooth and orderly transition for users.

According to Tether, Alloy by Tether served as an important experiment in tokenized real-world assets and gold-backed digital finance. The platform provided valuable insights into how users interact with collateralized digital assets. Despite these findings, Tether determined that its resources would be better focused on products with stronger adoption, deeper liquidity, and greater long-term growth potential.

The move aligns with Tether’s ongoing strategy to streamline its product portfolio. Previously, the company ended support for its euro-backed stablecoin EURT, completing redemptions in November 2025. Tether is now concentrating on expanding key products such as XAUT while exploring new opportunities in digital assets and blockchain-based financial infrastructure.

Launched in 2024, Alloy by Tether enabled users to create digital assets backed by XAUT. Its flagship product, aUSDT, was designed as a U.S. dollar-pegged stablecoin over-collateralized by gold, meaning the value of the underlying XAUT exceeded the amount of aUSDT issued. Meanwhile, Tether continues to pursue growth initiatives, including plans to launch GELT, a Georgian lari-backed stablecoin developed in collaboration with the Georgian government.