• Tether reported the winding down of the Alloy project and the gradual withdrawal of aUSDT from the market.
• The company will focus on Tether Gold and its key products.
• It gives users the opportunity to exchange the aUSDT stablecoin for XAUT within three months.

Tether announced the gradual winding down of the Alloy by Tether platform and the aUSDT stablecoin after a review of user activity, market demand, and the company's strategic priorities.

The company's statement notes that Alloy by Tether was created as an open platform to study demand for digital assets backed by Tether Gold tokens. One such product was aUSDT — an over-collateralized digital asset pegged to the U.S. dollar and guaranteed by tokenized gold XAUT.

"After the analysis conducted, Tether decided to direct resources to areas where it sees higher user demand, greater liquidity, and broader long-term market opportunities, including XAUT and other core ecosystem products," the company's message states.

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The winding down of the service will take place in stages. Starting June 17, the Alloy interface will no longer allow opening new positions or minting new aUSDT tokens.

Tether explained that this approach should ensure a controlled exit of users from the product:

"We are applying this approach so that users have a clear mechanism to close existing positions and at the same time do not create new exposure during the process of winding down the service."

Current users will be able to exchange their aUSDT and withdraw the collateral in the form of XAUT over the next three months in accordance with the platform's terms of use.

After September 17, 2026, holders of aUSDT who do not complete the redemption procedure will no longer be able to recover their XAUT tokens through Alloy.

An experiment with gold collateral

The Alloy by Tether platform was introduced in June 2024. At that time the company launched the first product on it — the aUSDT stablecoin. The project became one of the first examples of using tokenized gold as collateral to create a digital dollar asset.

The company noted that Alloy helped it better understand demand for RWAs, over-collateralized products, and users' interaction with tokenized assets.

The decision to close Alloy was made amid the rapid growth in the popularity of Tether Gold.

In May 2026 the company reported that XAUT's market capitalization exceeded $3.3 billion. According to Tether, the gold reserves backing the token grew by 36% over the quarter amid record prices for the precious metal and increased investor interest in safe-haven assets.

Earlier, in January 2026, the company also introduced Scudo — a new unit of account for XAUT, designed to simplify fractional ownership of tokenized gold. Tether compared this approach to the use of satoshi in the bitcoin network.

In addition, in June 2026 the company announced the launch of the world's first Visa card with cashback in XAUT in partnership with the Fasset platform. Tether said this product should turn tokenized gold from a store of value into a full-fledged payment instrument.

Source: Incrypted