Tether winds down gold-backed derivative stablecoin aUSDT
Cointelegraph 2026-06-18 03:26:18
Context: Tether, a stablecoin issuer, is winding down its gold-backed derivative stablecoin, aUSDT, and the Alloy by Tether platform, which allowed users to borrow or mint against their gold-backed digital asset XAUT holdings. This decision comes after a review of user activity, market demand, and the company's broader priorities, with Tether choosing to focus on products with stronger user demand, deeper liquidity, and broader long-term market opportunity. The winding down process will occur in phases, with the first phase starting immediately and users having three months to return their aUSDT and reclaim their XAUT.
Key Facts
- Tether's aUSDT is an overcollateralized derivative product built on top of its gold-backed digital asset XAUT using Ethereum smart contracts, which reflects the demand for gold-backed and tokenized real-world assets.
- Alloy by Tether, announced in June 2024, has a current market capitalization of $1.2 million and is backed by 14.73 kilograms of gold worth around $2.2 million.
- Users could borrow or mint against their XAUT holdings using Alloy by Tether, allowing them to access dollar-like liquidity without selling their gold exposure.
- The winding down process of aUSDT and Alloy by Tether will happen in phases, with the first phase starting immediately by preventing the opening of new positions or the minting of new aUSDT, and users having three months to return their aUSDT and reclaim their XAUT until the cut-off date on Sept. 17.
- Tether's gold-backed digital asset XAUT remains popular with a market capitalization of $3 billion and is backed by 22,169 kilograms of physical gold, with its market cap surging earlier this year when gold prices hit an all-time high of just over $5,300 per ounce.