Tether terminates the gold stablecoin aUSDT! Holders must redeem the gold token XAUT before September 17

The stablecoin giant Tether announced on June 17 that it will stop operating the gold-backed derivative stablecoin aUSDT. Users need to return aUSDT by September 17 to redeem the pledged XAUT gold tokens. Tether said it will focus resources on product lines with stronger user demand, including its XAUT gold token with a market capitalization of $3 billion, as well as emerging fields such as AI, cloud computing, and robotics.
(Background: Tether launched a new US dollar stablecoin aUSDT backed by “gold as reserves”! First-day market cap exceeded $8 million)
(Background detail: What is Tether Gold’s gold token? A look at how XAUt is issued and redeemed, plus the advantages & risks)

Table of Contents

Toggle

• Three-step deactivation, users have a 3-month buffer
• XAUT remains the main product, with a market cap of $3 billion
• Tether’s product line “streamlining”: three products terminated this year
• Transformation of the stablecoin giant: from issuing coins to tech holdings

The world’s largest stablecoin issuer Tether released an official announcement on the 17th, saying it will stop operating the Alloy by Tether platform and its gold-backed derivative stablecoin aUSDT. The product was launched in June 2024 and has been operating for only about two years so far.

Tether stated that after a comprehensive assessment of user activity, market demand, and the company’s “broader priorities,” it decided to concentrate resources on product lines with stronger demand, deeper liquidity, and greater long-term market opportunities— including its gold token XAUT and other core products across its ecosystem.

Three-step deactivation, users have a 3-month buffer

The Alloy platform allows users to collateralize XAUT gold tokens to mint aUSDT. This is similar to the over-collateralized stablecoin model in DeFi: the value of the locked XAUT must be greater than the value of the issued aUSDT. This enables users to access flexible capital usage with dollar-like liquidity without selling their gold exposure.

According to Tether data, aUSDT’s current market cap is approximately $1.2 million, backed by 14.73 kilograms of gold (worth about $2.2 million) as overcollateralization. The deactivation will be implemented in stages: starting immediately, opening new positions and minting new aUSDT will be prohibited. Users will have 3 months to return aUSDT and redeem XAUT, with the deadline being September 17.

XAUT remains the main product, with a market cap of $3 billion

In contrast to aUSDT, Tether’s gold token XAUT continues to perform strongly. Its current market cap is $3 billion, backed by 22,169 kilograms of physical gold. Earlier this year, when the gold price surpassed a record high of $5,300 per ounce, XAUT’s market cap surged at one point and then fell back by about 19%.

In February this year, Tether also acquired a 12% stake in precious metals platform Gold.com for $150 million. It plans to integrate XAUT into the platform to further expand the use cases for gold tokens.

Tether’s product line “streamlining”: three products terminated this year

aUSDT is not the only product Tether has discontinued this year. In February, Tether announced it will stop issuing the Chinese yuan stablecoin CNHT, citing “changes in market conditions, lackluster product interest, and limited community demand.” In November of last year, Tether also terminated its euro stablecoin EURT due to European regulatory issues, shifting resources to its asset tokenization platform Hadron launched in 2024.

On the other hand, Tether has not completely scaled back its stablecoin business. In May, Tether announced a cooperation with the Government of Georgia to plan the launch of the Georgian lari stablecoin GELT, showing it still has plans in the sovereign-currency-pegged stablecoin sector.

Transformation of the stablecoin giant: from issuing coins to tech holdings

Although stablecoins remain Tether’s core business, the company has shown strong ambitions for expansion beyond stablecoins. Its investment footprint spans bitcoin mining infrastructure, artificial intelligence, cloud computing, and robotics. On June 11, Tether just led a $1 billion funding round for German robotics company NEURA.

Judging by the pace of product line adjustments, Tether is shifting from a “pure stablecoin issuer” to a “crypto and tech holding group,” shutting down low-demand small stablecoins (CNHT, EURT, aUSDT) while making major investments in areas such as AI, robotics, and gold tokens.