Tether to Shut Down Alloy by Tether and aUSDT
Tether announced the phased closure of Alloy by Tether and its overcollateralized dollar-pegged asset aUSDT, citing a review of user activity, market demand, and company priorities. Existing customers have three months to return aUSDT and withdraw their gold-backed collateral.
Tether has announced it will gradually shut down Alloy by Tether and its associated synthetic dollar asset, aUSDT. Launched in June of last year, aUSDT was designed as an overcollateralized dollar token backed by Tether's gold-pegged token XAUt, with the value of locked gold exceeding the volume of issued assets. The goal was to allow users to obtain dollar liquidity without selling their tokenized gold.
Customers currently holding aUSDT have a three-month window to redeem the tokens and reclaim their collateral. According to Tether, the decision stems from a reassessment of user activity, market demand, and the company's strategic priorities. Resources will be focused on XAUt and other core ecosystem products.
The move marks a notable pivot for Tether, which had positioned Alloy as an innovative way to expand stablecoin options. No further details on the timeline beyond the three-month redemption period have been provided.
Source: ForkLog