Tether is beginning a phased wind-down of the Alloy by Tether platform and the gold-backed synthetic stablecoin aUSDT following a review of user activity, market demand, and the company’s strategic priorities.
Tether, the issuer of USDT, the world’s largest stablecoin by market capitalization, announced its decision to shut down Alloy by Tether, an open platform for creating digital assets backed by Tether Gold (XAUT) tokens. As part of the move, the company will also discontinue issuance of Alloy’s synthetic stablecoin aUSDT, which is backed by gold and pegged to the U.S. dollar.
According to Tether, the project provided insights into user demand for tokenized real-world assets (RWAs) in general and tokenized gold in particular. Following its review, the company concluded that further development of Alloy by Tether no longer aligns with its current priorities. Resources will be redirected toward products that demonstrate stronger user demand and market activity.
As part of the phased shutdown, users can no longer open new positions on Alloy by Tether or mint new aUSDT tokens. Tether said the measure is intended to support an orderly exit from existing positions and prevent the creation of new liabilities during the platform’s wind-down process.
Current aUSDT holders can redeem their tokens and withdraw the underlying XAUT collateral over the next 3 months, subject to the platform’s terms of service. After September 17, access to XAUT tokens through the platform will no longer be available.
The Alloy smart contract was deployed on the Ethereum blockchain in June 2024. As of June 18, aUSDT’s market capitalization stood at just $50 million, with roughly 97% of the supply concentrated in a single wallet. The asset currently has 76 holders.
