Tether is discontinuing Alloy by Tether and its gold-backed aUSDT stablecoin, citing stronger user demand and deeper liquidity in other products. The stablecoin issuer announced the strategic shift on June 18, 2026, with a three-month wind-down period ending September 17.
aUSDT was an overcollateralized derivative product built on Ethereum smart contracts that used Tether Gold (XAUT) as collateral. Users could deposit XAUT to mint aUSDT and access dollar-like liquidity without selling their gold exposure. The product currently holds 14.73 kilograms of gold backing, valued at $2.2 million, with a market capitalization of $1.2 million.
Tether said it would focus on products with “stronger user demand, deeper liquidity and broader long-term market opportunity.” The company did not specify why aUSDT underperformed relative to XAUT, which maintains a $3 billion market capitalization backed by 22,169 kilograms of physical gold.
Part of broader portfolio shift
The aUSDT discontinuation fits a pattern of selective pruning across Tether’s stablecoin lineup. The company wound down its euro stablecoin EURT in November 2025 citing European regulatory issues. In February 2026, Tether discontinued CNHT, its Chinese yuan stablecoin, citing low interest and limited sustained community demand.
Simultaneously, Tether is expanding in other directions. In May 2026, the company announced plans to launch GELT, a Georgian lari stablecoin, in cooperation with the government of Georgia. The company also invested $150 million for a 12% stake in Gold.com, a precious metals platform, in February 2026.
On June 11, Tether led a $1 billion funding round for NEURA, a German tech company, signaling investment beyond its core stablecoin business. Tether’s portfolio now spans Bitcoin mining infrastructure, artificial intelligence, cloud computing, and robotics alongside its foundational stablecoin operations.
Wind-down mechanics
Users holding aUSDT have until September 17, 2026, to return the derivative and reclaim their XAUT collateral. Tether did not detail the technical process for redemptions during the wind-down period.
XAUT remains Tether’s flagship gold-backed asset. The token reached an all-time high gold price of $5,300 per ounce earlier in 2026, though its market capitalization has retreated 19% from that peak.
Strategic rationale
The discontinuation reflects Tether’s pragmatic approach to product portfolio management. Rather than maintain products with marginal adoption, the company reallocates resources toward higher-demand offerings and adjacent markets. The aUSDT experiment, launched in June 2024, lasted approximately two years before being wound down.
Tether’s core stablecoin business remains the primary revenue driver, but the company’s expansion into mining, AI, and emerging-market currencies suggests a diversification strategy. The GELT launch and Gold.com investment indicate continued interest in gold-backed and emerging-market financial infrastructure.
