Tether Axes Gold-Backed Stablecoin Amid Shift to Core Products

Tether is shutting down its gold-backed aUSDT stablecoin and the Alloy platform that issues it. The move comes after nearly two years on the market, with existing holders having until September 17 to redeem their tokens for XAUT collateral.

The decision was made after reviewing user activity, market demand, and Tether's broader business priorities. aUSDT had a market capitalization of around $1.2 million, backed by about 14.73 kilograms of gold worth close to $2.2 million at the time of the announcement.

Tether is shifting its focus to areas with stronger demand, deeper liquidity, and broader long-term opportunity, naming XAUT specifically alongside other core products in its lineup. aUSDT's shutdown marks another product cut for Tether this year, following the discontinuation of its Chinese yuan stablecoin CNHT and euro stablecoin EURT.