Tether Axes Gold-Backed Stablecoin Amid Shift in Priorities

Tether has announced it will wind down its gold-backed aUSDT stablecoin and Alloy platform, citing 'stronger demand' for other products. The decision comes after roughly two years on the market.

The company will give holders until September 17 to redeem their tokens for XAUT collateral. After that date, the platform will no longer process redemptions.

aUSDT launched in June 2024 as an overcollateralized stablecoin built on Ethereum smart contracts. It had a market cap of roughly $1.2 million at the time of the announcement, backed by about 14.73 kilograms of gold worth close to $2.2 million.

Tether is directing its resources toward areas showing stronger demand and deeper liquidity instead. XAUT, specifically, remains a significant part of the company's lineup, with a market cap near $3 billion and 22,169 kilograms of physical gold backing it.