Tether will shut down the Alloy project and the aUSDT token - ForkLog

# Tether will wind down the Alloy project and the aUSDT token

June 17, Tether announced the phased closure of Alloy by Tether and aUSDT — a dollar-backed asset with over-collateralization in Tether Gold (XAUt).

The first phase has already begun: immediately after the interface update, users will no longer be able to open new positions or issue new aUSDT.

Existing clients have three months to return aUSDT and withdraw collateral in XAUt. From September 17, users who do not settle their aUSDT will lose the ability to directly redeem collateral through the platform.

Alloy by Tether was launched on June 17, 2024. The platform’s key product, aUSDT, was supposed to remain over-collateralized: the value of locked gold was higher than the volume of issued assets. The idea was to obtain dollar liquidity without selling tokenized gold.

Tether explained the closure as a result of a review of user activity, market demand, and company priorities. Resources will be focused on XAUt and other core ecosystem products.

The market capitalization of Alloy by Tether was estimated at approximately $1.2 million, and reserves included 14.73 kg of gold worth about $2.2 million. In comparison, the market value of XAUt is $3 billion, with collateral backing 22,169 kg of precious metals.

According to company representatives, Alloy helped test demand for gold-backed digital assets and collateralized products, as well as understand how users work with tokenization and RWA.

This is not Tether’s first product line reduction. In February, the company ceased development of the CNHT stablecoin based on the Chinese yuan, citing changing market conditions, low interest in the product, and limited sustainable demand.

In November 2025, Tether wound down EURT, citing regulatory conditions in Europe and a focus on the Hadron tokenization platform.

Recall that as of the first quarter of 2026, the issuer of stablecoins reported a net profit of $1.04 billion.