TLDR
- Tether is winding down the Alloy by Tether platform after reviewing user activity and market demand.
- The company has stopped new position openings and halted all new aUSDT minting.
- Existing users have until Sept. 17, 2026, to redeem aUSDT and withdraw XAUT collateral.
- Users who miss the deadline will lose access to collateral recovery through the Alloy platform.
- aUSDT is a dollar-pegged stablecoin backed by excess Tether Gold (XAUT) collateral.
Tether has started winding down its Alloy platform and will discontinue support for the aUSDT stablecoin. The company announced the decision after reviewing platform activity and market demand. It will now direct resources toward products with stronger adoption, including XAUT and other core offerings.
Tether Starts Alloy Shutdown and Ends New aUSDT Issuance
Tether announced on Wednesday that Alloy by Tether will stop accepting new positions immediately. The company also ended the minting of new aUSDT tokens across the platform.
The company said it reviewed user activity before making the decision. It stated that future efforts will focus on products with deeper liquidity and stronger demand.
“Tether has decided to focus resources on areas where it is seeing stronger user demand,” the company said. It also cited broader long-term opportunities across its ecosystem.
Existing users can still redeem their positions during a transition period. The company set a three-month window for users to return aUSDT and withdraw XAUT collateral.
Users must complete the process before Sept. 17, 2026. After that date, the platform will no longer support collateral recovery through Alloy.
Tether launched Alloy in 2024 as an open platform for creating crypto assets. The platform used Tether Gold-backed assets as collateral for token issuance.
Its main product, aUSDT, maintained a dollar peg through over-collateralization. Under that model, locked gold exceeded the value of issued stablecoins.
According to Alloy’s website, aUSDT currently holds a market capitalization of $1.27 million. The token remains backed by 14.73 kilograms of gold worth about $2.2 million.
aUSDT Closure Follows Earlier Stablecoin Changes
The latest move follows previous product adjustments by Tether. The company earlier discontinued support for its euro-pegged stablecoin, EURT.
Tether ended EURT redemptions in November 2025. At the time, the company said the decision aligned with its broader strategic direction.
The company has continued expanding other parts of its stablecoin business. While closing some products, it has also introduced plans for new regional offerings.
In May, Tether announced plans for GELT, a stablecoin linked to the Georgian lari. The project received support from the Georgian government.
The company has not announced changes to XAUT support. Instead, it identified the gold-backed token as one area receiving continued focus.
Tether said the Alloy review centered on actual platform usage. The company concluded that other products offered stronger growth opportunities.
The wind-down process has already started across the platform. However, existing users retain access to redemption functions during the transition period.
Tether stated that users should return outstanding aUSDT before the deadline. The company confirmed that Sept. 17, 2026, marks the final recovery date for collateral held through Alloy.
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