Tether Is Pulling the Plug on Its Gold Stablecoin Experiment - Should Investors Be Worried?

On June 17, 2026, Tether communicated the progressive cessation of Alloy by Tether and the discontinuation of its stablecoin aUSDT. The platform, launched exactly two years prior, allowed users to deposit Tether Gold (XAUT) as collateral to mint aUSDT, a synthetic asset with parity to the US dollar. The decision, effective immediately for new mints and position openings, responds to a review of user activity and market demand.

The magnitude of aUSDT within the Tether ecosystem allows a precise measurement of the actual scope of the shutdown. According to data from the Alloy website, the market capitalization of aUSDT stood at $1.27 million, backed by 14.73 kilograms of gold valued at $2.2 million. The figure represents a minuscule fraction against the $186 billion in USDT circulation and the approximate $2.7 billion capitalization of XAUT. The decision to close Alloy does not imply a retreat from the tokenized real-world assets (RWA) strategy of Tether, but rather a resource reallocation toward products with proven traction.

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