Tether to Wind Down aUSDT Stablecoin and Alloy by Tether
- Tether is discontinuing its gold-backed, overcollateralized stablecoin aUSDT after two years.
- The company aims to focus on products with stronger demand, including its gold-backed digital asset XAUT.
- Users have three months to return their aUSDT and reclaim XAUT, with the cut-off date set for September 17.
- XAUT currently has a market capitalization of $3 billion and is backed by over 22,169 kilograms of physical gold.
- Tether previously discontinued its Chinese yuan stablecoin (CNHT) and euro stablecoin (EURT) due to low demand and regulatory issues.
The winding down of aUSDT reflects Tether’s strategic shift towards areas with higher user interest and liquidity potential, particularly in gold-backed assets like XAUT. This change follows a review of market conditions and user activity.
As Tether phases out aUSDT, it continues to prioritize its core offerings like XAUT, which remains popular despite recent fluctuations in the gold market.(Source)
