Tether Gold

Stablecoin

Wednesday

aUSDT

Gold

<h3 id="what-to-know">What to know:</h3>
<ul>
 <li>Tether halted aUSDT minting and launched a three-month redemption period.</li>
 <li>Limited adoption and a $1.27 million market cap drove closure.</li>
 <li>Tether shifts resources toward XAUT while advancing Georgia’s GELT stablecoin.</li>
</ul>
Tether is shutting down Alloy by Tether and ending support for aUSDT, its gold-backed stablecoin, as the company redirects resources toward products attracting stronger demand across its ecosystem. The decision marks the end of a platform launched two years ago to offer dollar-pegged assets backed by tokenized gold. 
The company <a href="https://tether.io/news/tether-updates-users-on-strategic-changes-to-its-product-support-offering/" rel="noopener noreferrer nofollow">announced</a> on Wednesday that users can no longer open new positions or mint additional aUSDT. Instead, Tether has started a phased wind-down process that will allow existing users to close their positions and recover collateral over the next three months. 
According to Tether, the decision followed a review of platform activity, user participation, and market demand. The company said it plans to focus on areas showing deeper liquidity and greater long-term growth potential, including Tether Gold (XAUT) and other core products. 
Existing users have until Sept. 17, 2026, to return their aUSDT and withdraw the XAUT collateral locked within the platform. Those who fail to complete the process before the deadline will lose access to recovering their collateral through Alloy by Tether. 
Also Read: <a href="https://36crypto.com/bitcoin-xrp-lead-crypto-market-decline-as-altcoins-face-broad-selloff/" rel="noopener noreferrer nofollow">Bitcoin, XRP Lead Crypto Market Decline as Altcoins Face Broad Selloff</a> 
<h2 id="low-adoption-ends-alloy-s-two-year-run">Low Adoption Ends Alloy’s Two-Year Run</h2>
Alloy by Tether launched in 2024 as an open platform designed to create digital assets backed by Tether Gold. Its primary product, aUSDT, offered users a dollar-pegged stablecoin secured by excess gold reserves rather than traditional cash-backed assets. 
Under that model, the value of the locked gold always exceeded the amount of aUSDT in circulation. As a result, the stablecoin maintained an over-collateralized structure intended to support price stability. 
However, adoption remained limited compared to <a href="https://36crypto.com/tether-expands-stablecoin-push-with-georgias-digital-lari-partnership/" rel="noopener noreferrer nofollow">Tether’s larger stablecoin</a> operations. Data published on the project’s website shows that aUSDT currently has a market capitalization of roughly $1.27 million. 
Meanwhile, the stablecoin is backed by approximately 14.73 kilograms of gold valued at around $2.2 million. While the collateral ratio remained strong, user demand did not develop at the scale seen in Tether’s flagship products. Consequently, the company decided to discontinue the platform and concentrate resources on products generating stronger market activity. 
<h2 id="tether-continues-reshaping-its-stablecoin-portfolio">Tether Continues Reshaping Its Stablecoin Portfolio</h2>
The closure of <a href="https://36crypto.com/tethers-rise-sparks-new-bitcoin-crash-warning-from-bloomberg-strategist/" rel="noopener noreferrer nofollow">Alloy by Tether</a> follows another strategic move involving the company’s stablecoin offerings. Tether previously ended support for EURT, its euro-pegged stablecoin, and officially stopped redemptions in November 2025. 
That decision formed part of a broader effort to align products with changing market conditions and user preferences. Moreover, the latest move suggests Tether continues to evaluate its portfolio based on adoption levels and long-term viability. 
Despite retiring some products, the company remains active in developing new stablecoin initiatives. In May, Tether announced plans to launch GELT, a <a href="https://36crypto.com/tether-expands-stablecoin-push-with-georgias-digital-lari-partnership/" rel="noopener noreferrer nofollow">stablecoin linked to the Georgian lari</a>, with support from the Georgian government. 
The shutdown of Alloy by Tether therefore reflects a shift in priorities rather than a slowdown in expansion. Instead, Tether is concentrating on products that attract greater usage while continuing to explore new opportunities in regional markets. 
<h2 id="conclusion">Conclusion</h2>
Tether’s decision to end aUSDT support closes a chapter for its gold-backed stablecoin experiment. As the company streamlines its product lineup, attention is shifting toward higher-demand offerings and future stablecoin projects aimed at broader market adoption. 
Also Read: <a href="https://36crypto.com/bitcoin-whale-addresses-reach-highest-btc-holdings-since-mid-march/" rel="noopener noreferrer nofollow">Bitcoin Whale Addresses Reach Highest BTC Holdings Since Mid-March</a> 
The post <a href="https://36crypto.com/tether-ends-ausdt-support-as-gold-backed-stablecoin-platform-closes/" rel="noopener noreferrer nofollow">Tether Ends aUSDT Support as Gold-Backed Stablecoin Platform Closes</a> appeared first on <a href="https://36crypto.com" rel="noopener noreferrer nofollow">36Crypto</a>.

Tether Ends aUSDT Support as Gold-Backed Stablecoin Platform Closes

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