Tether has announced that it will shut down Alloy by Tether and discontinue support for aUSDT.
The company has already stopped users from minting new aUSDT tokens or opening new positions. Existing customers will now have a limited period to close their positions and recover their Tether Gold holdings.
Tether said the decision followed a review of market demand, user activity, and its long-term business strategy.
Tether Stops New aUSDT Minting
Tether disabled new aUSDT minting on June 17 as part of the gradual shutdown of Alloy by Tether.
Users can no longer create new positions through the platform. However, existing holders still have time to return their aUSDT and withdraw the XAUT tokens used as collateral.
The company said the shutdown will happen in stages to ensure an orderly transition.
Customers have three months to complete the redemption process under the platform’s terms of use.
September 17 Deadline for aUSDT Holders
Tether has set September 17, 2026, as the final deadline for users to return their aUSDT.
After that date, holders will no longer be able to recover their XAUT through the Alloy platform.
Users with active positions should therefore review their holdings and complete the required process before the deadline.
The company has also updated the Alloy interface to remove the option to mint new aUSDT or open additional positions.
Why Is Tether Closing Alloy?
Tether said Alloy provided useful information about demand for tokenized real-world assets and gold-backed digital products.
However, the company decided to direct its resources toward products with stronger adoption, greater liquidity, and better long-term growth potential.
These products include Tether Gold, also known as XAUT, as well as the company’s other major digital asset offerings.
The decision suggests that Tether is simplifying its product range and focusing on services that attract more users and trading activity.
Tether Continues to Focus on XAUT
Although Alloy is closing, Tether will continue supporting XAUT.
Tether Gold is a digital token backed by physical gold. Each token represents ownership of a specific amount of gold held in secure storage.
XAUT has become one of the company’s key products outside its USDT stablecoin business.
Tether appears to believe that XAUT has stronger standalone demand than aUSDT, which used the gold-backed token as collateral.
What Are Alloy and aUSDT?
Tether launched Alloy in 2024 as an open platform for creating digital assets backed by Tether Gold.
Its main product was aUSDT, a synthetic dollar-pegged stablecoin backed by XAUT.
Unlike traditional stablecoins that hold cash or government debt as reserves, aUSDT used gold-backed digital tokens as collateral.
The system was over-collateralized. This meant that the value of the XAUT locked in the platform was greater than the total amount of aUSDT issued.
This structure was designed to help aUSDT maintain its peg to the US dollar.
Tether Has Closed Other Stablecoin Products
The Alloy shutdown is not the first time Tether has discontinued one of its digital assets.
The company previously ended support for EURT, its euro-pegged stablecoin. EURT redemptions officially stopped in November 2025.
That decision was also part of Tether’s effort to focus on products with stronger market demand.
At the same time, the company continues to explore new opportunities in selected regions.
In May, Tether announced plans to introduce GELT, a stablecoin linked to the Georgian lari. The project is expected to receive support from the Georgian government.
What the Alloy Shutdown Means for Users
The immediate priority for aUSDT holders is the September 17 deadline.
Users must return their aUSDT before that date to withdraw the XAUT backing their positions through the Alloy platform.
The decision does not signal the end of Tether’s interest in tokenized gold. Instead, it shows that the company wants to concentrate on XAUT and other products with higher adoption and liquidity.
The shutdown also highlights how digital asset companies regularly adjust their product strategies based on market demand.
