|
Getting your Trinity Audio player ready...
|
- Tether is ending Alloy by Tether and aUSDT after reviewing demand and market opportunities.
- XAUT remains a priority as Tether expands its gold-backed and tokenized asset strategy.
- The company is moving toward broader investments in AI, robotics, and digital infrastructure.
Stablecoin giant Tether is shutting down Alloy by Tether and its gold-backed aUSDT product after a two-year run, marking a shift in the company’s approach as it prioritizes products with stronger adoption and long-term growth potential. The decision highlights a broader industry trend where crypto companies are narrowing their focus on services that attract deeper liquidity and consistent user demand.
Tether announced the strategic change after reviewing market activity, customer interest, and future business priorities. While stablecoins remain central to the company’s ecosystem, Tether is increasingly expanding into areas such as Bitcoin infrastructure, artificial intelligence, cloud technology, robotics, and real-world asset tokenization.
Tether Withdraws aUSDT as Demand Shifts Toward XAUT
Alloy by Tether was introduced in June 2024 as an overcollateralized digital asset product built around Tether Gold (XAUT). The system allowed users to lock their XAUT holdings as collateral and create aUSDT, giving them access to dollar-like liquidity without selling their gold exposure.
Unlike traditional stablecoins, aUSDT relied on excess collateral, meaning the value of the locked gold was higher than the amount of aUSDT created. The model was designed to combine gold ownership with decentralized finance-style borrowing tools.
However, Tether said it will now redirect resources toward products showing stronger market demand. The first stage of the shutdown has already started, with new positions and aUSDT minting no longer available. Users have until September 17 to return their aUSDT and recover their XAUT.
Tether Gold Remains a Major Focus
Although Alloy is being discontinued, Tether continues to see strong interest in its gold-backed asset XAUT. The token has grown into a major real-world asset product, backed by physical gold reserves and holding a market capitalization of around $3 billion.
The popularity of XAUT increased as gold prices reached record highs earlier this year, though the token’s market value has since declined alongside changes in gold prices. Tether has also strengthened its gold strategy through investments, including a stake in precious metals platform Gold.com, where it plans to expand XAUT integration.
The company’s recent moves suggest a wider focus on tokenized assets rather than only traditional stablecoin products.
Tether Continues Reshaping Its Product Portfolio
The closure of Alloy follows other product changes from Tether. Earlier, the company discontinued its Chinese yuan stablecoin CNHT due to limited demand and changing market conditions. It also ended support for its euro stablecoin EURT, citing regulatory challenges in Europe and a shift toward other initiatives.
At the same time, Tether has continued exploring new opportunities, including its asset tokenization platform Hadron and investments in emerging technologies. The company recently supported a major funding round for German robotics firm NEURA, reflecting its interest beyond cryptocurrency payments.
Also Read: Monero Explodes 46% Then Crashes: Tether Freezes $72M Wallet in Shock Crypto Move
Tether’s decision to wind down Alloy by Tether shows a more selective approach to product development. While the experiment demonstrated demand for gold-backed financial tools, the company is now concentrating on areas where it sees stronger adoption, liquidity, and future growth opportunities. The move reinforces Tether’s broader strategy of becoming a wider technology and digital asset infrastructure company.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
