Tether closes the Alloy project and aUSLT token: a strategic move by the stablecoin issuer
On June 17, Tether officially announced the phased discontinuation of the Alloy by Tether platform and its associated aUSDT token. This dollar-pegged asset was backed by tokenized gold Tether Gold (XAUt) with overcollateralization — meaning the value of the locked gold exceeded the amount of aUSDT issued.
The first phase of the shutdown has already taken effect: immediately after the interface update, users lost the ability to open new positions and issue new aUSDT. Existing clients have been given a three-month period to redeem aUSDT and withdraw their XAUt collateral. Starting September 17, those who fail to return aUSDT will lose the ability to retrieve collateral directly through the platform.
Why is this important?
Alloy by Tether was launched exactly one year ago — on June 17, 2024. The key idea of the product was to provide users with dollar liquidity without the need to sell tokenized gold. However, as data shows, the project's scale remained modest: Alloy's market capitalization was about $1.2 million, with gold reserves of only 14.73 kg (approximately $2.2 million). For comparison, the market value of XAUt itself reaches $3 billion, backed by 22,169 kg of the precious metal.
Tether explained the closure by reviewing user activity, market demand, and the company's strategic priorities. Resources will be redirected toward developing XAUt and other key ecosystem products. According to representatives, Alloy helped test demand for gold digital assets and collateral instruments, as well as understand user behavior in the fields of tokenization and RWA (real-world assets).
The trend of reduction
This is not the first time Tether has scaled back its product line. In February, the company discontinued the development of the CNHT stablecoin based on the Chinese yuan, citing changing market conditions and low demand. In November 2025, EURT was shut down due to regulatory requirements in Europe and a focus on the Hadron tokenization platform. It is worth noting that in the first quarter of 2026, Tether's net profit amounted to $1.04 billion, confirming the issuer's financial stability.
My analysis: The closure of Alloy and aUSDT is a logical step amid market consolidation. The project failed to attract a significant audience, and its market capitalization was negligible compared to Tether's main assets. The company is clearly betting on scaling XAUt and Hadron, which looks more promising in the context of growing interest in tokenized real-world assets. Investors should closely monitor these areas — they could become new growth drivers for the Tether ecosystem.