Tether has stopped minting aUSDT and begun a phased shutdown of Alloy by Tether, bringing the platform to a close after roughly two years. Existing users now have a three-month period to unwind positions and recover collateral, with the deadline set for Sept. 17, 2026.
aUSDT minting stops as redemption window opens
The company said users can no longer open new positions or mint additional aUSDT. Tether tied the move to an internal review of platform activity, user participation, and market demand. Current holders must return aUSDT and withdraw the XAUT collateral locked on the platform before the deadline; after that point, collateral recovery through Alloy by Tether will no longer be available.
Low adoption capped the project at about $1.27 million
Alloy by Tether launched in 2024 as an open platform for digital assets backed by Tether Gold. Its main product, aUSDT, was structured as a dollar-pegged stablecoin backed not by cash equivalents but by tokenized gold held in excess of the circulating supply.
Under that design, the value of locked gold remained above the amount of aUSDT in circulation, creating an over-collateralized model aimed at price stability. Data on the project website shows aUSDT has a market capitalization of roughly $1.27 million. The collateral consists of about 14.73 kilograms of gold worth around $2.2 million. Collateralization stayed solid, but user demand never reached the scale of Tether’s larger products, leading the company to discontinue the platform.
Tether shifts focus to XAUT and keeps building new stablecoins
Tether said resources will be redirected toward businesses with deeper liquidity and stronger long-term growth prospects, including Tether Gold (XAUT) and other core offerings. The company had already ended support for its euro-pegged stablecoin EURT and officially stopped redemptions in November 2025.
At the same time, Tether is still adding new stablecoin projects. In May, the firm announced plans for GELT, a stablecoin linked to the Georgian lari and backed by support from the Georgian government. The closure of Alloy by Tether points to a reshaping of Tether’s stablecoin lineup based on adoption levels and long-term viability.