Key facts
- Tether is discontinuing its gold-backed derivative stablecoin aUSDT and the Alloy platform.
- The decision follows a review of user activity and market demand.
- Tether will prioritize products like its gold-backed digital asset XAUT.
Tether is discontinuing its gold-backed derivative stablecoin aUSDT and the Alloy platform, citing a review of user activity and market demand. The company will focus on products with stronger adoption, including its existing gold-backed digital asset XAUT.
Tether's decision to discontinue aUSDT and the Alloy platform signals a strategic pivot towards core products with higher adoption and liquidity, reflecting a broader trend of consolidation and focus within the stablecoin and tokenized asset markets.
Tether, the issuer of the world's largest stablecoin USDT, is discontinuing its gold-backed derivative stablecoin aUSDT and its associated Alloy platform. The company announced the strategic shift, citing a review of user activity, market demand, and its broader priorities. Tether plans to concentrate resources on areas demonstrating stronger user demand, deeper liquidity, and greater long-term market opportunity, including its existing gold-backed digital asset XAUT and other core products. The aUSDT stablecoin was an overcollateralized derivative product built on top of XAUT using Ethereum smart contracts, designed to reflect demand for gold-backed and tokenized real-world assets. The Alloy platform allowed users to deposit XAUT as collateral to mint aUSDT, maintaining collateral value exceeding the issued stablecoin value. This mechanism enabled users to access dollar-like liquidity without liquidating their gold holdings. The Alloy by Tether platform, launched in June 2024, currently has a market capitalization of $1.2 million and is backed by 14.73 kilograms of gold, valued at approximately $2.2 million. The winding down process begins immediately with the prevention of new positions and minting of aUSDT. Users will have a three-month window to return their aUSDT and reclaim their XAUT, with a cut-off date set for September 17. Tether Gold (XAUT) continues to be popular, boasting a market capitalization of $3 billion and backed by 22,169 kilograms of physical gold. This move follows Tether's earlier decisions to discontinue other stablecoins, such as its Chinese yuan stablecoin CNHT and its euro stablecoin EURT, as part of a strategic focus on initiatives like its asset tokenization platform.