Tether ends aUSDT to focus on core products

• Tether is winding down Alloy by Tether and its gold-backed aUSDT stablecoin after reviewing user demand and market activity.
• Users have until September 17 to redeem aUSDT and reclaim the XAUT collateral backing the product.
• The company said it will focus resources on products with stronger demand, including Tether Gold and other core ecosystem offerings.

Tether announced it will discontinue Alloy by Tether and its gold-backed aUSDT stablecoin, ending the two-year-old product as part of a broader effort to focus on higher-demand areas of its business.

The decision follows an internal review of user activity, market demand and strategic priorities, with Tether citing stronger growth opportunities in products including Tether Gold (CRYPTO:XAUT) and other core offerings.

“We have decided to focus resources on areas where we are seeing stronger user demand, deeper liquidity and broader long-term market opportunity,” said Tether.

Alloy by Tether allowed users to deposit XAUT as collateral to mint aUSDT, an overcollateralised stablecoin built on Ethereum (CRYPTO:ETH), with the product reaching a market capitalisation of approximately US$1.2 million backed by 14.73 kilograms of gold worth about US$2.2 million.

Tether has immediately stopped new aUSDT minting and position creation, while users have until September 17 to redeem outstanding tokens and reclaim collateral, and as a private company no share price was available following the announcement.

The company said Tether Gold remains a significant product with a market capitalisation of about US$3 billion backed by 22,169 kilograms of physical gold, reflecting continued demand for tokenised precious metal exposure.

The move follows other product rationalisations this year, including the discontinuation of the CNHT Chinese yuan stablecoin and the EURT euro stablecoin, while Tether continues expanding into areas such as artificial intelligence, robotics, Bitcoin mining and asset tokenisation.

At the time of reporting, Ethereum price was $1,728.33.