Tether Shuts Down Alloy and aUSDT Gold-Backed Stablecoin, Users Have Until Sept. 17 to Redeem

According to Tether, the company is immediately halting new minting on Alloy by Tether and its gold-backed aUSDT stablecoin, shutting down the product less than two years after launch. Existing users have until Sept. 17 to redeem their aUSDT and reclaim their underlying tokenized gold collateral. Tether cited low adoption and limited market demand as reasons for the shutdown, noting aUSDT currently has a market cap of around $1.2 million backed by approximately 14.73 kilograms of gold. The company said resources will be redirected toward products with stronger adoption and longer-term growth potential.
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