Tether aUSDT to Shut Down as Company Ends Support for Alloy

18 Jun, 2026 Updated 18 Jun, 2026

By Manisha M

Contributor

Manisha Mishra is a journalist, editor, and researcher specializing in cryptocurrency, fintech, and emerging technologies, with more than seven years of industry experience. She most recently served as Editor-in-Chief at 99Bitcoins, leading editorial strategy and overseeing research reports that reached millions of readers worldwide. Prior to that, she headed the research division at AMBCrypto, focusing on on-chain analytics, market intelligence, and regulatory developments across the digital asset sector. Over the course of her career, Manisha has interviewed more than 40 founders, investors, and industry executives, while also producing and hosting video content on blockchain and Web3. She holds a Master’s degree in Mass Communication and is the co-founder of Web3 Minutes, a digital media platform dedicated to Web3 news, insights, and education.

Read full bio

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Highlights

Tether has ended its support for Alloy and aUSDT.
New aUSDT minting has been halted starting 17 June.
The company shifts focus to XAUt and core products.

AD Get $10 Instantly + $50 Trial Access

Tether, the company behind the world’s largest Stablecoin USDT, has announced plans to wind down Alloy by Tether and discontinue support for aUSDT, a dollar-pegged Stablecoin backed by Tether Gold (XAUT).

The company said the decision comes after reviewing user activity, market demand, and its long-term business priorities. Going forward, Tether plans to focus more on products that have stronger adoption and deeper liquidity, including XAUT and other major offerings within its ecosystem.

Tether aUSDT Minting Stops as Tether Winds Down Alloy

As part of the phased shutdown, Tether has immediately disabled the ability to open new positions or mint new aUSDT through the Alloy by Tether platform.

However, existing users will still have time to close their positions. Tether said customers can return their aUSDT and withdraw their XAUT over the next three months, according to the platform’s terms of use.

The company also issued an important deadline. Users who fail to return their aUSDT by September 17, 2026, will no longer be able to recover their XAUT through the Alloy platform. Tether said,

The wind-down will take place in phases to support an orderly transition. As a first step, starting today, the Alloy by Tether interface will be updated to remove the ability to open new positions or mint new aUSDT.

Why Is Tether Closing Alloy?

According to Tether, Alloy by Tether provided valuable insights into how users interact with tokenized real-world assets and gold-backed digital products.

Despite this, the company concluded that resources would be better allocated to products showing stronger growth potential. The move mirrors Tether’s earlier decision to discontinue support for its euro-pegged Stablecoin EURT, which officially ended redemptions in November 2025 as part of the company’s broader strategic shift.

Meanwhile, Tether continues to expand in other areas. In May, the company announced plans to launch GELT, a Stablecoin representing the Georgian lari, with support from the Georgian government.

What Are Alloy by Tether, aUSDT, and XAUT?

Launched in 2024, Alloy by Tether is an open platform that allows users to create digital assets backed by XAUT, Tether’s gold-backed token.

Its main product, aUSDT, is a stablecoin pegged to the U.S. dollar but over-collateralized with XAUT. In simple terms, the value of the gold locked behind the token is higher than the amount of aUSDT issued, helping maintain its stability.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

TAGS
Tether USDT

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.