Tether is winding down Alloy by Tether and its overcollateralized gold-backed digital asset, aUSDT, after evaluating customer usage, market demand, and long-term business priorities, according to a Wednesday announcement.

The company said the platform successfully provided valuable insights into tokenized real-world assets but will now prioritize Tether Gold (XAUT) and other core ecosystem products.

The wind-down will occur in stages, with the first phase immediately disabling the creation of new Alloy positions and preventing the minting of additional aUSDT. According to Tether, this approach allows existing users to unwind their positions while limiting further exposure.

Users holding aUSDT will have until September 17, 2026, to redeem their tokens and withdraw the associated XAUT collateral in accordance with the platform’s terms, as noted by the firm. After that date, any remaining users will no longer be able to reclaim their XAUT through Alloy by Tether.