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Tether to wind down aUSDT after June 2024 launch

Tether to wind down aUSDT after June 2024 launch

Tether has halted new Alloy positions and aUSDT minting, with holders able to redeem tokens and recover XAU₮ collateral until Sept. 17, 2026 as the company shifts toward more liquid products.

USDT

Fact Check
The official Tether announcement directly confirms the wind-down of Alloy by Tether and aUSD₮, with immediate disabling of new positions and minting and a roughly three-month redemption window (through Sept 16/17, 2026). The Block and crypto.news independently corroborate the launch year (2024), the focus shift to XAUT and core products, and the September 2026 redemption deadline. The only minor discrepancy is the effective date (official June 17 vs claim June 18), which does not affect the substance of the claim.
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Summary

Tether said it is discontinuing Alloy by Tether and ending production of its overcollateralized stablecoin aUSDT after limited adoption and a review of user activity, liquidity conditions and strategic priorities. Minting has already been deactivated, and users were told on June 17 that the platform had been upgraded to prevent the creation of new positions. Holders can redeem aUSDT and recover their XAU₮ collateral until Sept. 17, 2026. Tether launched aUSDT in June 2024 as a dollar-denominated stablecoin minted against overcollateralized Tether Gold, or XAU₮. The token’s market capitalization is about $1.2 million, backed by 14.73 kilograms of gold valued at about $2.2 million. The move leaves XAU₮ as Tether’s main gold-linked token, with more than 22,000 kilograms of gold backing it and a market capitalization estimated at $3 billion. The wind-down fits a broader pattern of retiring low-use products, including CNH₮ earlier in 2026, while concentrating on higher-liquidity assets such as USDT and XAU₮ and expanding its push into tokenized commodities.

Terms & Concepts
  • overcollateralized stablecoin: A stablecoin backed by collateral worth more than the value of tokens issued to help maintain solvency and price stability.
  • XAU₮: Tether’s gold-backed digital asset, backed by physical gold and used as collateral for aUSDT.
  • tokenized commodities: Digital tokens that represent ownership or exposure to physical commodities such as gold.