Tether, the issuer of stablecoin USDT, is shutting down Alloy by Tether and its gold-backed derivative stablecoin aUSD₮ as the company shifts resources toward products with greater market demand and liquidity.
The wind-down takes effect immediately, with Tether halting new positions and suspending further minting of aUSD₮. The move follows a review of user activity and the company’s broader business priorities as it focuses on areas it sees as offering stronger growth opportunities.
Existing users will have three months to close their positions and redeem assets through the platform. Tether said customers must complete the process by September 17, 2026, after which they will no longer be able to recover XAU₮ through Alloy.
In announcing the changes, the company stated, “Tether Updates Users on Strategic Changes to its Product Support Offering.” It added that the decision followed an assessment of product usage and long-term strategic priorities.
Tether keeps focus on XAU₮
Alloy was launched in 2024 through Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V. as an experiment in gold-backed digital assets. The platform introduced aUSD₮, a dollar-pegged token backed by excess reserves of XAU₮, Tether’s gold-backed cryptocurrency.
However, aUSD₮ struggled to capture significant volume compared to the runaway success of its underlying collateral asset. Explaining the decision to discontinue the product, the company said, “Following this review, Tether has decided to focus resources on areas where it is seeing stronger user demand, deeper liquidity, and broader long-term market opportunity, including XAU₮ and other core products across its ecosystem.”
As it turns out, the development of this crypto asset is happening amid the emergence of XAU₮ as one of the company’s most significant asset-backed cryptocurrencies. Currently, the asset has a valuation of around $3 billion and is fully secured by over 22,000 kilograms of gold. Recently, XAU₮ was listed on the exchange Maxbit in Thailand, while BNB Chain received support back in March.
Each XAU₮ coin corresponds to one troy ounce of gold that is kept in Switzerland, thus allowing users to be exposed to gold in an easy way.
Broader strategy targets larger markets
Tether’s decision to shut down Alloy is part of a broader effort to streamline its product lineup. The company has already ended support for CNHT and EURT after they failed to gain significant traction, leaving USDT and XAU₮ as its main focus.
Simultaneously, Tether is putting more attention on tokenization and digital asset infrastructure. It has launched the Hadron tokenization platform and is exploring a stablecoin tied to Georgia’s currency, the lari.
The company is also expanding the use of XAU₮ beyond trading. Earlier this month, Tether partnered with Fasset to launch a Visa card that lets users spend the value of their gold-backed tokens in local currencies and receive cashback in XAU₮.
In the Middle East, Tether is strengthening its presence through new partnerships. On June 16, it announced signing a memorandum of understanding with Dubai Multi Commodities Centre to support blockchain education and tokenization projects across Dubai’s trade sector.
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