Tether Shuts Down Gold-Backed aUSDT Stablecoin to Focus on Core Products

Stablecoin issuer Tether has announced plans to shut down Alloy by Tether and its gold-backed derivative stablecoin aUSDT as the company shifts focus toward products with stronger market demand and higher liquidity.

The decision follows an internal review of user activity and long-term business priorities. Tether said it wants to concentrate resources on core products, including its gold-backed token XAUT and other expanding parts of its ecosystem.

Alloy by Tether allowed users to lock XAUT tokens as collateral to mint aUSDT, giving holders access to dollar-linked liquidity without selling their gold-backed assets. The system worked similarly to overcollateralized decentralized finance products built on Ethereum smart contracts.

Tether Keeps Focus on XAUT and Broader Expansion Plans

According to Tether, Alloy by Tether currently holds a market capitalization of around $1.2 million and is backed by nearly 14.73 kilograms of gold valued at about $2.2 million.

The shutdown process has already started. Users can no longer open new positions or mint fresh aUSDT tokens. Existing holders have until Sept. 17 to redeem their assets and reclaim XAUT collateral.

While aUSDT is being discontinued, Tether Gold continues to grow. XAUT currently holds a market capitalization near $3 billion and is backed by more than 22,000 kilograms of physical gold.

Tether has also expanded beyond stablecoins through investments in artificial intelligence, robotics, cloud computing and bitcoin mining infrastructure. Recently, the company led German robotics firm NEURA’s $1 billion funding round.