Tether Axes Gold-Backed Stablecoin Amid Resource Realignment

Tether is ending its gold-backed stablecoin, aUSDT, and shutting down the Alloy platform that issues it. The move affects users who hold aUSDT, which has a market cap of roughly $1.2 million, backed by about 14.73 kilograms of gold worth close to $2.2 million.

aUSDT was introduced in June 2024 as an overcollateralized stablecoin on Ethereum smart contracts. Users locked XAUT collateral to mint it, with the value of gold always exceeding the aUSDT supply in circulation, intended to preserve stability.

Tether is redirecting resources towards areas showing stronger demand and broader long-term opportunity instead, naming XAUT alongside other core products. The company has been cutting its product roster several times in the past year, discontinuing stablecoins like CNHT and EURT due to limited demand or regulatory friction.