Tether to shut down gold-backed stablecoin aUSDT after two years

Tether is discontinuing its gold-overcollateralized derivative stablecoin, aUSDT, and its issuance platform, Alloy by Tether, as part of a strategic rebalancing to focus on user demand, secure liquidity, and expand long-term market opportunities, Cointelegraph reported. Launched in June 2024, the Alloy platform was a DeFi structure that allowed users to collateralize Tether Gold (XAUT) to mint the dollar-pegged aUSDT, hedging against value volatility. However, its market capitalization has only reached $1.2 million. The shutdown will be implemented in phases, beginning with the suspension of new position openings and further issuance.