On June 17, Tether announced the phased closure of Alloy by Tether and the aUSDT token, a dollar-backed asset collateralized by Tether Gold (XAUt).
The first phase has already begun: following the interface update, users can no longer open new positions or issue new aUSDT tokens.
Current clients have been given three months to redeem their aUSDT and withdraw their collateral in XAUt. Starting September 17, users who do not settle their aUSDT will lose the ability to retrieve their collateral directly through the platform.
Alloy by Tether was launched on June 17, 2024. The platform's key product, aUSDT, was intended to remain over-collateralized, meaning the value of the locked gold would exceed the amount of issued assets. The idea was to provide dollar liquidity without selling tokenized gold.
Tether explained the closure as a result of a review of user activity, market demand, and the company's priorities. Resources will now be focused on XAUt and other key products within the ecosystem.
The market capitalization of Alloy by Tether was estimated at approximately $1.2 million, with reserves amounting to 14.73 kg of gold valued at around $2.2 million. In comparison, the market value of XAUt stands at $3 billion, with collateral totaling 22,169 kg of the precious metal.
According to company representatives, Alloy helped gauge demand for gold-backed digital assets and collateralized products, as well as understand how users interact with tokenization and RWA.
This is not the first product line reduction for Tether. In February, the company halted the development of the CNHT stablecoin, which was based on the Chinese yuan, citing changing market conditions, low interest in the product, and limited sustainable demand.
In November 2025, Tether discontinued EURT, explaining the decision was due to regulatory conditions in Europe and a focus on the Hadron tokenization platform.
As a reminder, Tether reported a net profit of $1.04 billion for the first quarter of 2026.