Tether winds down Alloy and aUSDT gold-backed stablecoin

Tether is winding down Alloy by Tether and its gold-backed, overcollateralized aUSDT stablecoin after two years, reallocating resources toward products and areas with stronger demand. The decision follows a review of user activity, market demand and the company’s broader priorities.

aUSDT was built as an overcollateralized derivative on top of XAUT using Ethereum smart contracts. Alloy allowed users to lock XAUT as collateral to mint aUSDT, with the value of XAUT locked exceeding the aUSDT issued, letting holders access dollar-like liquidity without selling their gold exposure.

Announced in June 2024, Alloy has a market capitalization of $1.2 million and is backed by 14.73 kilograms of gold worth around $2.2 million. The wind-down will occur in phases, starting immediately with a halt on new positions and minting; users have three months to return aUSDT and reclaim their XAUT before a cut-off on Sept.

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