Tether is winding down the Alloy project and the aUSDT token: a strategic pivot toward gold.
On June 17, Tether announced the phased shutdown of the Alloy by Tether platform and its key product, the aUSDT token. This asset was an overcollateralized dollar instrument pegged to the Tether Gold (XAUt) token.
What will change for users?
The first phase of the wind-down has already been launched: 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 — until September 17 — to return aUSDT and withdraw their XAUt collateral. If this is not done, the ability to retrieve the collateral directly through the platform will be lost.
History and scale of the project
Alloy by Tether was launched exactly one year ago — on June 17, 2024. The idea was to create an overcollateralized dollar asset: the value of the locked gold always exceeded the volume of issued aUSDT. This allowed users to obtain dollar liquidity without needing to sell tokenized gold. Alloy's market capitalization was estimated at approximately $1.2 million, with reserves of 14.73 kg of gold worth about $2.2 million. For comparison, the market value of XAUt exceeds $3 billion, with backing of 22,169 kg of the precious metal.
Reasons for closure
Tether explained the decision by citing a review of user activity, market demand, and company priorities. Resources will be focused on XAUt and other key ecosystem products. According to representatives, Alloy helped test demand for gold digital assets and collateral instruments, as well as study user behavior in the areas of tokenization and real-world assets (RWA).
Trend of product line reduction
This is not the first time Tether has wound down products. In February, the company discontinued the development of the CNHT stablecoin, pegged to the Chinese yuan, citing low interest and limited demand. In November 2025, EURT was closed due to regulatory conditions 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.
Expert analysis
The wind-down of Alloy and aUSDT is a logical step given the colossal success of XAUt, whose market capitalization is thousands of times greater than that of the project being closed. Tether is clearly signaling to the market: gold is their main strategic asset, and experimental instruments with low liquidity will be cut off. For investors, this means the company is concentrating on scalable and in-demand products, which strengthens its position in the long term.