Tether, the world's largest supplier of dollar-pegged stablecoins, is winding down Alloy by Tether and discontinuing support for aUSDT, a stablecoin over-collateralized by Tether Gold (XAUT).

In a statement released Wednesday, Tether said it decided to shut down Alloy by Tether after a review of user activity and market demand. 

"Following this review, Tether has decided to focus resources on areas where it is seeing stronger user demand, deeper liquidity, and broader long-term market opportunity, including XAUT and other core products across its ecosystem," the company said.

As part of the phased wind-down, the platform will immediately stop allowing users to open new positions or mint new aUSDT, according to the statement.

Existing users will be able to return their aUSDT and remove their XAUT for the next three months, the company said. Those who fail to return their aUSDT by Sept. 17, 2026, will no longer be able to recover their XAUT through the platform.

Launched in 2024, Alloy by Tether is an open platform to create crypto assets backed by XAUT. Its flagship, aUSDT, is a dollar-pegged stablecoin over-collateralized with XAUT. This means that the value of locked gold always exceeds the amount of aUSDT issued to ensure stability.

According to the platform's website, the aUSDT stablecoin currently has a market capitalization of $1.27 million, backed by 14.73 kilograms of gold valued at $2.2 million.

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The move follows Tether's earlier decision to discontinue support for its euro-pegged stablecoin EURT. The company officially ceased EURT redemptions in November 2025, saying the move "aligns with its broader strategic direction."

Meanwhile, Tether said in May that it plans to launch GELT, a stablecoin representing the Georgian lari, with support from the Georgian government.